Social Media Analytic-Based Corporate Credit Rating Forecasting

This study develops an approach to forecasting corporate credit ratings by analyzing public opinion toward corporations on social media to assist financial institutions in effectively evaluating and controlling corporate risk. This objective is achieved through the following steps: (i) designing a corporate credit rating forecasting process based on big data from social media, (ii) developing techniques for corporate credit rating forecasting, and (iii) implementing and evaluating the corporate credit rating forecasting mechanism. The experimental results of this research show that the accuracy of corporate credit rating prediction based on social media big data is higher than that of traditional financial report, corporate governance and macroeconomic indicators. Moreover, the adopted forecasting model, K-Nearest Neighbor (KNN), is superior to the other machine learning models in terms of accuracy.