Research of Loan Default Factors for Small and Medium Enterprises

• Main Authors: Chia-Bin ,Hsu, 徐家賓
• Other Authors: Chu-Ying ,Lin
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/84234655892146395528

碩士 === 東吳大學 === 企業管理學系 === 103 === Small and medium enterprises (SMEs) have played a main role in the economic development in Taiwan, whose corporate scale and financial mechanism compare disadvantageously with those of listed or OTC listing companies. In terms of obtaining of bank financing, SMEs often perform much poorer than those large scale listed or OTC listing companies. In recent years, with the opening and liberalization of financial market, commercial banks have been actively engaged in business expansion and risk control, therefore, the loan business of SMEs with relatively high default risk will necessarily receive attention of banking industry. Some researchers have found that the credit checking and loan quality on SMEs is closely related to the bank performance and operation risks. This study attempts to construct the default precaution model for SMEs that use the credit default appraisal factors, with the current data used by commercial banks in Taiwan for the purpose of credit default risks of lending operation to SMEs. It also discusses the default factors and risk appraisal methods of SMEs. This study employs the logit model to establish the financial crisis precaution model of loan default for SMEs, interprets the risks factors of loan default for SMEs through 19 variables of 3 dimensions, namely, finance, features and risk symptoms of lending companies, and reaches the main conclusions through solid evidence. First, this study finds that the 6 variables, namely, the inventory days, debt ratio, turnover, high-tech, abnormal records and the fact that the new business check in recent 3 months exceeds 5 banks, are significantly and positively correlated with the chance of loan default by SMEs. The 2 variables of interest guarantee and the turnover growth rate are significantly and negatively correlated with the chance of loan default by SMEs. Second, the current data in support of loan business for SMEs by commercial banks in Taiwan has certain reference value; meanwhile, it is feasible for financial guidelines, corporate features and risk symbols to act as risk appraisal factors of future loan default events (financial crisis) chance. Although this paper employs the results out of materials from a commercial bank in Taiwan that has been financially reformed and consolidated, these results also display the effect on risk control of lending business for SMEs achieved by banks that are weak in mechanism and management performance after the financial reforms in Taiwan in recent years.