Journal of Risk Analysis and Crisis Response

Volume 2, Issue 2, August 2012, Pages 131 - 138

A Credit Rating Model for Enterprises Based on Projection Pursuit and K-Means Clustering Algorithm

Authors
Mu Zhang, Zongfang Zhou
Corresponding Author
Mu Zhang
Received 7 February 2012, Accepted 14 March 2012, Available Online 1 August 2012.
DOI
10.2991/jracr.2012.2.2.6How to use a DOI?
Keywords
enterprise credit rating; Projection Pursuit; kernel density estimation; initial cluster centers; K-means clustering algorithm
Abstract

This paper proposes a new credit rating model for enterprises based on the Projection Pursuit and K-means clustering algorithm. Firstly, using Projection Pursuit, the comprehensive credit score of each sample is obtained, so as to reflect the structure or characteristics of original multi-dimensional data. Secondly, the distribution density of the comprehensive credit score series is estimated by the kernel density estimation method, and then the initial cluster centers in original high dimension space are determined according to the local maximum points of density function. Finally, starting from the initial cluster centers above, using K-means clustering algorithm, the final cluster centers are obtained, and then the credit grades are partitioned. Thus, the credit rating for enterprises is realized. Taking the high-tech listed companies in China as samples, it is proved that the model proposed by this paper is feasible and effective.

Copyright
© 2017, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Journal
Journal of Risk Analysis and Crisis Response
Volume-Issue
2 - 2
Pages
131 - 138
Publication Date
2012/08/01
ISSN (Online)
2210-8505
ISSN (Print)
2210-8491
DOI
10.2991/jracr.2012.2.2.6How to use a DOI?
Copyright
© 2017, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - JOUR
AU  - Mu Zhang
AU  - Zongfang Zhou
PY  - 2012
DA  - 2012/08/01
TI  - A Credit Rating Model for Enterprises Based on Projection Pursuit and K-Means Clustering Algorithm
JO  - Journal of Risk Analysis and Crisis Response
SP  - 131
EP  - 138
VL  - 2
IS  - 2
SN  - 2210-8505
UR  - https://doi.org/10.2991/jracr.2012.2.2.6
DO  - 10.2991/jracr.2012.2.2.6
ID  - Zhang2012
ER  -