CREDITWORTHINESS ANALYSIS IN CORPORATE FINANCE: INTERNATIONAL APPROACHES
Keywords:
Creditworthiness, corporate finance, financial ratios, international approaches, credit risk assessment, credit scoring models, financial reporting standards.Abstract
Creditworthiness plays a crucial role in corporate finance, especially in the context of securing external funding, managing risk, and maintaining investor confidence. This paper explores international approaches to analyzing corporate creditworthiness by examining widely used models, financial ratios, and regulatory frameworks. Emphasis is placed on comparative practices across developed and emerging economies, including the use of accounting data, credit scoring systems, and qualitative assessments. The research highlights the strengths and limitations of various global practices, identifying the most effective strategies that contribute to reliable credit assessments. This analysis not only contributes to the understanding of global financial standards but also offers practical insights for improving credit evaluation in developing countries.
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