Monitoring credit risk in the social economy sector by means of a binary goal programming model

Fernando Garcia Garcia, Francisco Guijarro () and Ismael Moya ()

Service Business, 2013, vol. 7, issue 3, 483-495

Abstract: Monitoring the credit risk of firms in the social economy sector presents a considerable challenge, since it is difficult to calculate ratings with traditional methods such as logit or discriminant analysis, due to the relatively small number of firms in the sector and the low default rate among cooperatives. This paper introduces a goal programming model to overcome such constraints and to successfully manage credit risk using economic and financial information, as well as expert advice. After introducing the model, its application to a set of Spanish cooperative societies is described. Copyright Springer-Verlag Berlin Heidelberg 2013

Keywords: Credit risk; Cooperative firms; Financial information; Financial service institutions (search for similar items in EconPapers)
Date: 2013
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DOI: 10.1007/s11628-012-0173-7

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