Research on the Contagion Mechanism of Associated Credit Risk in the Supply Chain

Abstract

In recent years, the credit crisis of Hainan Airlines Holding Co., Ltd., (HNA), Suntech, Bogang, Dunan, Chengxing and other enterprises, as well as the fact that many enterprises and financial institutions in the supply chain suffer heavy losses caused by the credit crisis, make the associated credit risk in the supply chain widely concerned by the industry and academia, and also warn the importance of commercial banks to strengthen the credit risk management of supply chain customers. In order to correctly understand and understand the associated credit risk in the supply chain, this paper reveals the contagion mechanism of the associated credit risk in the supply chain based on multiple perspectives such as the origin, contagion path and basic characteristics of the associated credit risk in the supply chain. The research shows that factors such as supply chain enterprises’ own factors, the association relationship in the supply chain, the external environment of the supply chain and the relationship with the core enterprises form the contagion source of the associated credit risk in the supply chain. Trade credit, loan guarantee and interpersonal relationship constitute the contagion channel of associated credit risk in the supply chain. The contagion effect caused by the association relationship in the supply chain makes the associated credit risk in the supply chain present the characteristics of infectivity, systematization and spillover. This study is helpful for the regulatory authorities to strengthen the management of enterprise credit risk in the supply chain.