Non-financial indicators for credit risk analysis of Chinese technology-oriented micro and small enterprises

Fang Da and Yi Peng

Journal of the Operational Research Society, 2023, vol. 74, issue 4, 1198-1210

Abstract: Technology-oriented micro and small enterprises (TMSEs) play an important role in technology innovation, employment increase, and economic growth. Due to their high risk and resource consuming nature, the Chinese government has set up special funding, and encouraged banks to provide credit support for TMSEs. However, traditional enterprises’ credit evaluation methods are not suitable for TMSEs due to their characteristics. How to assess the credit risk of TMSEs is a relatively new and challenging topic. This study is to identify novel indicators that can capture the creditrelated characteristics of TMSEs. Specifically, we proposed that innovation capability and business models can be used to identify some special aspects of TMSEs’ credit risk. To validate the new indicators, we compared the performance of traditional financial indicators and the new indicators. The results showed that innovation and business model indicators can effectively improve the performance of classifiers in the credit risk assessment of TMSEs.

Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/01605682.2022.2072781 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:tjorxx:v:74:y:2023:i:4:p:1198-1210

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/tjor20

DOI: 10.1080/01605682.2022.2072781

Access Statistics for this article

Journal of the Operational Research Society is currently edited by Tom Archibald

More articles in Journal of the Operational Research Society from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().