Consider the level of the retailer’s sales effort research on pledge rate decision-making

Jiasen Xu ()
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Jiasen Xu: Shanghai Maritime University, Institute of Logistics Science and Engineering

A chapter in Proceedings of the 2024 International Conference on Applied Economics, Management Science and Social Development (AEMSS 2024), 2024, pp 27-32 from Springer

Abstract: Abstract In the market competition environment of oversupply, this paper considers the impact of retailers’ sales effort level on the market demand, and studies the relationship between the pledge rate decision and the expected income of financial institutions under the mode of dynamic inventory pledge financing. Financial institutions and retailers of market demand changes are complete information, with financial institutions own risk appetite, financing enterprise exogenous default probability, collateral loss, sales effort level set constraints, with financial institutions inventory pledge financing final expected returns for the target function to establish pledge rate decision model, respectively, retailer different sales effort level of pledge rate decision. Research shows that when the commodity price is certain, the retailer sales effort level will affect the financial institutions expected income, when the higher sales effort level, financial institutions expect more, the best rate of pledge value is larger, namely, financial institutions tend to provide higher loan ratio to financing enterprises.

Keywords: Inventory pledge; Pledge rate; Sales effort level; Expected return (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-2-38476-257-6_5

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DOI: 10.2991/978-2-38476-257-6_5

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