Risk-Shifting Behavior in Credit Department of Farmers'' Association under Government Credit Guarantee in Taiwan

• Main Authors: Chih-ming Liao, 廖志明
• Other Authors: Sheng-hung Chen
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/67528693618865828169

碩士 === 南華大學 === 財務金融學系財務管理碩士班 === 97 === 　　This paper investigates empirically whether Taiwan’s Credit Department of Farmers’Association (CDFA) presents the risk-shifting behavior under Agricultural Credit Guarantee Scheme (ACGS) using 250 CDFAs over the period 2000 to 2007. We also identify key factors affecting the nonperforming loan ratio under ACGS in CDFAs. The empirical evidences indicate that CDFAs with lag 1 year nonperforming loan ration are more likely to shift the risk of guaranteed loan onto ACGS. The factors of institution and local agricultural environment have impact on nonperforming loan ratio under ACGS. There are significant differences in nonperforming loan ratio under ACGS among different type and case scale of CDFAs. Specifically, nonperforming loan ratio under ACGS in CDFAs shows a significantly and substantially decreasing after 2005 due to ACGS’s refunding and extension. In addition, regional difference in nonperforming loan ratio under ACGS is insignificant. This implicates that risk-shifting behavior in CDFAs is universal.