Impacts of SME Owner’s Industrial Investment Link on Loan Default Risk: Regional Loan Data in Taiwan

• Main Authors: HUANG, KUN-KUNG, 黃崑恭
• Other Authors: CHEN, SHENG-HUNG
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/jk47k6

碩士 === 南華大學 === 財務金融學系財務管理碩士班 === 106 === This paper uses the regional data on credit lending contracts of SMEs from 2009 to 2016 among the branches of a listed commercial bank. We not only focus on the impact of industrial investment links of SME owners on loan default risk, but also looks at the relationship between bank contacts (measured by the number of years past) and tests whether it is the primary bank that has any impact on the probability of bankruptcy of SMEs. The purpose of this paper is to explore whether SMEs can obtain better credit conditions due to their ongoing contacts (number of contacts and number of banks) by using the Panel GLS method to conduct empirical estimates. The empirical results indicate that the more diversified industrial investment links SME owners can significantly increase the risk of loan defaults; conversely, the more concentrated industrial investment links will significantly reduce the loan default risk.