Ming Zhong
School of Business Administration, South China University of Technology, 510641,Guangzhou, China
Wen-Wei Guo
Finance Department, Guangdong University of Finance and Economics, 510320, Guangzhou, China
Guang-hui Song
School of Business Administration, South China University of Technology, 510641,Guangzhou, China
Jun-hui Xu
Joinsun�s Consulting CO., LTD.Guangzhou, 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.
PDF References Citation
Received: June 07, 2013;
Accepted: October 08, 2013;
Published: November 12, 2013
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.
DOI: 10.3923/jas.2013.4833.4838
URL: https://scialert.net/abstract/?doi=jas.2013.4833.4838
DOI: 10.3923/jas.2013.4833.4838
URL: https://scialert.net/abstract/?doi=jas.2013.4833.4838
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