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

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.