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Measurement of Credit Risk of Small and Medium-sized S&T Enterprises in China

Author

Listed:
  • Jia-wen Zhang
  • Long-hui Chen
  • Xiang-yun Liu
  • Fen Ding

Abstract

This paper mainly studies the measurement of credit risk of Chinese small and medium-sized enterprises in Science and Technology (SMEs in S&T). Starting from the characteristics of the development of S&T enterprises, this paper selects the chinext 12 Chinese small enterprises annual data as sample, and builds a first-passage-time jump-diffusion structural model to measure small and mid-sized enterprise credit risk on the basis of the traditional KMV model.At last,it concludes that the first-passage-time jump-diffusion structural model has higher accuracy on the measurement of the credit risk for it obeys to the high risk and high volatility of the small and medium-sized S&T enterprises. At the same time, it puts forward the policy proposal on the development of the small and medium-sized S&T enterprises in China.

Suggested Citation

  • Jia-wen Zhang & Long-hui Chen & Xiang-yun Liu & Fen Ding, 2014. "Measurement of Credit Risk of Small and Medium-sized S&T Enterprises in China," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 5(4), pages 21-31, July.
    • Handle: RePEc:jfr:ijba11:v:5:y:2014:i:4:p:21-31
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    References listed on IDEAS

    as
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