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Financial Credit Risk Evaluation Based on Core Enterprise Supply Chains

Author

Listed:
  • WeiMing Mou

    (College of Economics and Management, Changzhou Institute of Technology, Changzhou 213022, China)

  • Wing-Keung Wong

    (Department of Finance, Fintech Center Big Data Research Center, Asia University, Taichung 41354, Taiwan)

  • Michael McAleer

    (Department of Finance, Asia University, Taichung 41354, Taiwan
    Econometric Institute, Erasmus School of Economics, Erasmus University Rotterdam, 3000 Rotterdam, The Netherlands
    Department of Economic Analysis and ICAE, Complutense University of Madrid, 28040 Madrid, Spain
    Institute of Advanced Sciences, Yokohama National University, Yokohama 240-8501, Japan)

Abstract

Supply chain finance has broken through traditional credit modes and advanced rapidly as a creative financial business discipline. Core enterprises have played a critical role in the credit enhancement of supply chain finance. Through the analysis of core enterprise credit risks in supply chain finance, by means of a ‘fuzzy analytical hierarchy process’ (FAHP), the paper constructs a supply chain financial credit risk evaluation system, making quantitative measurements and evaluation of core enterprise credit risk. This enables enterprises to take measures to control credit risk, thereby promoting the healthy development of supply chain finance. The examination of core enterprise supply chains suggests that a unified information file should be collected based on the core enterprise, including the operating conditions, asset status, industry status, credit record, effective information to the database, collecting related data upstream and downstream of the archives around the core enterprise, developing a data information system, electronic data information, and updating the database accurately using the latest information that might be available. Moreover, supply chain finance and modern information technology should be integrated to establish the sharing of information resources and realize the exchange of information flows, capital flows, and logistics between banks. This should reduce a variety of risks and improve the efficiency and effectiveness of supply chain finance.

Suggested Citation

  • WeiMing Mou & Wing-Keung Wong & Michael McAleer, 2018. "Financial Credit Risk Evaluation Based on Core Enterprise Supply Chains," Sustainability, MDPI, vol. 10(10), pages 1-17, October.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:10:p:3699-:d:175769
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    More about this item

    Keywords

    supply chain finance; core enterprises; financial credit risk evaluation; fuzzy analytical hierarchy process (FAHP);
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • P42 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Productive Enterprises; Factor and Product Markets; Prices

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