University of Piraeus. International Strategic Management Association
Abstract
Recently, banks and credit institutions have shown an increased interest in
developing and implementing credit-scoring systems for taking corporate and
consumer credit granting decisions. The objective of such systems is to analyze
the characteristics of each applicant (firm or individual) and support the decision
making process regarding the acceptance or the rejection of the credit application.
This paper addresses this problem through the use of a multicriteria classi -
fication technique, the M.H.DIS method (Multi-group Hierarchical DIScrimination).
M.H.DIS is applied to real-world case studies regarding the assessment of
corporate credit risk and the evaluation of credit card applications. The results
obtained through the M.H.DIS method are compared to the results of three wellknown
statistical techniques, namely linear and quadratic discriminant analysis,
as well as logit analysis.peer-reviewe
