An Empirical Study on Factors Affecting the Credit Level of Small Micro-enterprises in China
Abstract:
This paper try to fully reveal the key factors affecting the
credit level of small micro-enterprises form four features such as firm features,
shareholder features, contract features and financial features by stepwise regression
method. Innovation of this study is to construct credit evaluation model specially
for small micro-enterprise which contained some important the financial indicators
and non-financial indicators. The results show that the credit of small micro-enterprises
has closely relationship with those four features. Those features of small micro-enterprises
such as enterprises’ size (net asset and sales), profitability (return
on asset, return on net assets) and solvency (net cash flow to current liabilities)
have significantly positive affect on its credit level. However, some features
such as shareholders holding ratio, the proportions of major shareholders and
mortgage-backed approach have significantly negative affect on its credit level.
How to cite this article
Ming Zhong, Wen-Wei Guo, Guang-hui Song and Jun-hui Xu, 2013. An Empirical Study on Factors Affecting the Credit Level of Small Micro-enterprises in China. Journal of Applied Sciences, 13: 4833-4838.
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