Providing a Credit Rating Model Based on the Optimal level of Corporate Ownership Structure with Particle Aggregation Approach
Subject Areas :
majid azaripour
1
,
آزیتا جهانشاد
2
1 - University of Research SciencesTehran
2 - استادیار گروه حسابداری دانشگاه آزاد واحد تهران مرکزی
Keywords: credit rating, Ownership Structure, particle aggregation algorithm,
Abstract :
Ownership structure is the element used to represent governance structure.On deciding the creditworthiness of a company, credit rating agencies examine its governance structure. In the event that the governance structure is weak, then the credit rating agencies would very likely see the firm’s financial position as poor and stakeholders in the company as vulnerable to possible losses. Therefore, the present study aimed to determine the effect of corporate governance mechanisms on credit rating to determine the optimal amount of ownership structure (institutional ownership, managerial ownership and ownership concentration) at different levels of credit rating in a sample of 101 companies listed on the Tehran Stock Exchange during The years 2012 to 2020. For this purpose, first, the credit rating of the surveyed companies was calculated using the emerging market score model. In the next stage, companies with credit ratings (health zone, doubt zone and helpless zone) were divided into three parts. Then the research question was analyzed using the particle aggregation optimization (PSO) algorithm in relation to the ownership structure. The optimal results of the particle aggregation algorithm indicate that the ownership structure plays a decisive role at different levels of credit rating in the Tehran Stock Exchange. The results clearly showed that the high structure of institutional ownership and the relatively low percentage of managerial ownership and ownership concentration can reduce the risk of default and increase the various levels of credit rating in companies listed on the Tehran Stock Exchange.
