IDEAS home Printed from https://ideas.repec.org/a/hin/jnddns/7733395.html
   My bibliography  Save this article

Credit Risk Assessment of Small and Medium-Sized Enterprises under the Financial Model of Online Supply Chain

Author

Listed:
  • Shengli Chen
  • Dong Wang
  • Zheng Wan
  • Sundarapandian Vaidyanathan

Abstract

The rapid development of Internet technology meant that online supply chain finance has become an important source of small- and medium-sized enterprise (SME) finance. From a review of associated studies, this study constructed an online supply chain financial credit risk evaluation index system that had eleven level 2 indicators and 28 level 3 indicators for the four dimensions of financing enterprise qualification, core enterprise qualification, supply chain operations, and the macroenvironment. To assess the viability of this indicator system, data on 368 SMEs in four industries, clothing, home appliances, pharmaceutical, and construction, were selected as research samples. An online supply chain financial credit risk evaluation model for the different industries was then constructed using principal component analysis (PCA) and logistic regression methods. It was concluded that when evaluating online supply chain financial credit risk, it is necessary to focus on the solvency, profitability, and asset structure efficiencies of the financing enterprises. Due to the different production and operating characteristics of industries, significant variations in the degree and direction of the credit risk factors between industries were found; therefore, evaluating credit risks by industry significantly improved the accuracy of the model’s credit risk predictions. For example, home appliance SMEs need to pay greater attention to their inventory turnover and construction industry SMEs should pay greater attention to their sales growth rate, return on common stockholders’ equity, and GDP growth rate. Based on these results, some suggestions for commercial banks, supply chain core enterprises, and SMEs are given to improve supply chain financing. The conclusion of this study enriches the related research on credit risk assessment of SMEs and also provides decision support for improving SMEs to prevent credit risk.

Suggested Citation

  • Shengli Chen & Dong Wang & Zheng Wan & Sundarapandian Vaidyanathan, 2022. "Credit Risk Assessment of Small and Medium-Sized Enterprises under the Financial Model of Online Supply Chain," Discrete Dynamics in Nature and Society, Hindawi, vol. 2022, pages 1-13, December.
  • Handle: RePEc:hin:jnddns:7733395
    DOI: 10.1155/2022/7733395
    as

    Download full text from publisher

    File URL: http://downloads.hindawi.com/journals/ddns/2022/7733395.pdf
    Download Restriction: no

    File URL: http://downloads.hindawi.com/journals/ddns/2022/7733395.xml
    Download Restriction: no

    File URL: https://libkey.io/10.1155/2022/7733395?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hin:jnddns:7733395. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mohamed Abdelhakeem (email available below). General contact details of provider: https://www.hindawi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.