About this Economics, Econometrics and Finance article
Networks and News in Credit Risk Management by Ferdinand Graf; Martin Dittgen is a Economics, Econometrics and Finance article available to read on EtoBox.
Abstract The presumably most important function of a corporation is the establishment and management of connections to customers, suppliers, investors, debtors and competitors. All these connections may produce profits or bear risks. Hence, the isolated inspection of a corporation (or also a sovereign) may be insufficient. Instead, the economic environment of a corporation and its connections should be included in its valuation. Usually, this is done via manual and hardly standardized processes with their associated large efforts. This article presents a new method to analyze business news and to build up a network of corporations based on business news. To this end, we search in news articles from Reuters and Bloomberg for corporation names or synonyms and assume a connection exists between two corporations if the corporations are mentioned together frequently. Based on these connections, we (1) build up a network for the S&P500 companies, (2) identify groups therein to validate the approach manually and (3) test, whether corporations with many connections and a particularly favorable position in the network receive better rating grades compared to corporations with fewer connecti
It is typically read by researchers, students, and practitioners in Economics, Econometrics and Finance.
- Author
- Ferdinand Graf; Martin Dittgen
- Publisher
- Duncker & Humblot GmbH
- Published
- 2019
- Language
- EN
- Field
- Economics, Econometrics and Finance (Social Sciences)