Naslov
ASPECTS OF THE ANALYSIS OF CREDITWORTHINESS ESTIMATES USING QUALITATIVE INDICATORS AND THEIR SIGNIFICANCE IN HARSH MARKET CONDITIONS

Autori
Vareško, Andrea

Vrsta, podvrsta i kategorija rada
Poglavlja u knjigama, znanstveni

Knjiga
The 5th International Scientific Conference Entrepreneurship and Macroeconomic Management: Reflections on the World in Turmoil

Urednik/ci
Afrić Rakitovac, Kristin ; Šugar, Violeta ; Bevanda, Vanja

Izdavač
Fakultet ekonomije i turizma Dr. Mijo Mirković Sveučilišta Jurja Dobrile u Puli

Grad
Pula

Godina
2011

Raspon stranica
195-216

ISBN
978-953-7498-41-2

Ključne riječi
company, creditworthiness estimation, financial indicators, qualitative indicators, risk management, synergic use of financial and qualitative indicators

Sažetak
Ignoring the assumption of non-financial factors impact on the Company's operations could result in inappropriately low risk estimates, which ultimately results in the inadequate and insufficient implementation of the overall creditworhiness assessment procedure. Based on balance sheet data and indicators derived from it, it can be determined how the Company operated in the past and how successfull it was. But these data tell us very little about the entrepreneur, business orientation and plans of the Company, its products, people, etc. In fact, there is no data since the financial statement has been compiled and no data on the direction in which the Company is heading. Even if the data from the balance indicate smooth performance of the Company, the impact of external factors can very quickly lead the Company into serious business problems or ruin. By qualitative factors, we denote any information not included in accounting records. The use of a systematic method for determining the creditworthiness of the Company by using financial indicators as well as qualitative indicators, results in a more accurate and credible information about a business entity. It also contributes to a more efficient assessment of the creditworthiness of companies and thereby reduces the possibility of errors due to insufficient information about the company's business. The evaluation of the creditworthiness includes information about Company liquidity, profitability and debt data - data obtained from financial statements, as well as qualitative data related to the assessment of management, ownership structure, market position, organization, and other information based on subjective criteria. The exact calculation of the creditworthiness of the company, which is expressed as its creditworthiness when calculating financial indicators, as well as in the case of qualitative indicators, is done by choosing separable indicators, which in the course of determining the creditworthiness, by using the methods of analysis and synthesis, are subjected to systematic evaluation. The conducted study sought to determine the significance of quality indicators and their importance in assessing the creditworthiness under current harsh economic conditions. The results of the empirical research in the financial sector of the Republic of Croatia, dealing with creditworthiness assessment, confirm the assumption that the qualitative indicators are a unavoidable factor in determining the creditworthiness of companies which makes it possible to effectively present a comprehensive assessment of the creditworthiness of the Company, and that is also used together with financial indicators when determining the final grade of creditworthiness.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA