The predictive accuracy of Sukuk ratings; Multinomial Logistic and Neural Network inferences

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Summary

This study provides an empirical foundation for the investors to estimate the ratings assigned using the approach from several rating agencies and past researches on bond ratings by comparing the accuracy of two logistic models; Multinomial Logistic Regression and Neural Network to create a model of rating probability from several financial variables.

Type
article
Published
2015-09-01
Cited by
46
References
110

Keywords

Multinomial logistic regression, Credit rating, Bond credit rating, Issuer, Actuarial science

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