Level Of Credit Research Articles

Speed of Adjustment of Trade Receivables: The Case of a Developing Country

Examining the mean reversion behavior and the adjustment speed of trade receivables of nonfinancial listed firms in Vietnam from 2010 to 2022, this is the first study to investigate whether firms feature a tendency to move toward target trade credit level, and how COVID-19 influences trade credit supply in a dynamic setting in a developing market. The research results suggest that firms do have a target trade receivables level and the speed of adjustment toward this target level is quite significant. Further, we show that firms demonstrate a faster adjustment speed toward target trade credit receivables during the COVID-19 pandemic. We show that lower profitability and higher allowance for bad trade receivables can positively affect the adjustment speed. As the COVID-19 pandemic tends to affect profitability and the level of bad trade receivables, we consider these factors as channels that explain why firms tend to adjust faster toward their target trade credit during the pandemic. The study offers implications for achieving sustainable development and improving business performance.

Credit Evaluation of Technology-Based Small and Micro Enterprises: An Innovative Weighting Method Based on Machine Learning and AHP

Technology-based small and micro enterprises play a crucial role in national economic and social development. Managing their credit risk effectively is key to ensuring their healthy growth. This study is based on corporate credit management theory and Wu’s three-dimensional credit theory. It clarifies the credit concept and measurement logic of these enterprises, considering their unique development characteristics in China. A credit evaluation system is constructed, and an innovative method combining machine learning with comprehensive evaluation is proposed. This approach aims to assess the credit status of technology-based small and micro enterprises in a thorough and objective manner. The study finds that, first, the credit level of these enterprises is currently moderate, with little variation. Second, financial information remains a key factor in credit evaluation. Third, the ML-AHP (Machine Learning-Analytic Hierarchy Process) combined weighting method effectively integrates subjective experience with objective data, providing a more rational assessment. The findings provide theoretical references and practical guidance for the healthy development of technology-based small and micro enterprises, early credit risk warning, and improved financing efficiency.

Beyond Quantitative Easing Towards a New Monetary Theory

In his article Interest and Prices, originally published in 1898, Wicksell summarized the two goals of monetary policy that today constitute the corner­stones of monetary theory. The first goal is to prevent monetary shocks due to excessive/or insufficient credit in the system, resulting in a conserva­tive view of monetary policy. The second goal is to adequate the level of credit to changes in the real sector of the economy as reflected in changes in the real level of savings or investment. The first goal has been the main emphasis of the Quantitative Theory of Money which supports both Monetarism and Rational Expectations. The second goal was the route taken by Keynes who emphasized the volatility of investment as a main cause of economic instability. This article provides a third route that benefits from the two routes previously mentioned and proposes a new monetary theory.

A study of the impact of urban business credit environment on environmental pollution.

Environmental pollution has become a global concern, so it is critical to find out the elements that influence it. Is the urban business credit environment influencing urban environmental conditions? The study takes the entropy method for calculating the environmental pollution index of 276 prefecture-level cities across China from 2010 to 2021, the CE1 index to describe the urban business credit environment, and a spatial Durbin model to empirically analyze the mechanism and transmission path of the urban business credit environment on environmental pollution. The findings demonstrate that: (1) there is an important positive spatial association between China's urban pollution index and urban business credit index, and that the level of spatial clustering of the two is increasing over time. (2) the urban business credit environment and environmental pollution have an inverted "U" shape relationship and a significant spatial spillover effect, which means that once a certain threshold is reached, improving the urban business credit environment reduces environmental pollution in local and neighboring areas. (3) The influence of the urban business credit environment on environmental deterioration varies by region. The extra heterogeneity test results for the different regions show that the relationship between business credit level and environmental pollution is consistent with the overall situation in the eastern and western regions, the opposite effect was observed in the central region. (4) Changes in the urban business credit environment have an indirect impact on environmental conditions due to the amount of regional financial development and technological innovation potential. To reduce pollution in the region, prefectural-level cities must strengthen the construction of urban business credit systems, strive to create a favorable business credit environment, strengthen the spatial spillover effect, and guide the resource elements of business credit planning to flow into the central and western parts of China reasonably. The study's findings have significant practical implications for modifying the government's development strategy and improving the urban environment.

Cung và cầu tín dụng thương mại: Trường hợp mua, bán chịu vật tư nông nghiệp ở Đồng bằng Sông Cửu Long

The objective of the article is to estimate the influence of factors on supply and demand trade credit in case of buying and selling agricultural materials of agents and rice farmers in the Mekong Delta, Vienam. The estimated results from the primary data of 574 transactions show that there are three factors that have positive coefficients with statistical significance in two states of supply and demand (familiar time, agent number and agricultural land area farmer's karma). The geographical distance factor has statistical significance in two states of supply and demand, but in the supply state, this factor has a positive coefficient and in the demand state, this factor has a negative coefficient. Three factors with statistically negative coefficients in both states are the experience of farmers, farming income and translation value. In addition, for experienced agents that have a positive influence on commercial credit level, for farmers, the number of agents has a positive influence on the ability to buy the farmer. The research results can enable stakeholders (farmers, input suppliers, and government agencies) to make decisions that improve operational performance and foster sustainable agriculture.

Impact of Domestic Investment on Domestic Credit Level. Does Institutional Quality Matter?

Impact of Domestic Investment on Domestic Credit Level. Does Institutional Quality Matter?

The Impact of Corporate ESG Performance on Leverage Manipulation Empirical Evidence From A-Share Panel Data of Chinese Listed Companie

ESG stands for Environment (Environment), society (Social) and corporate governance (Government) respectively. It is a non-financial performance investment concept and enterprise evaluation standard, and has been used by enterprises as an important indicator to measure its quality. In the context of "deleveraging", there is a lack of targeted research on whether enterprise ESG performance can help enterprises "healthy" deleveraging. In this paper, the A-share listed companies in Shanghai and Shenzhen stock markets from 2008 to 2022 are selected as the original samples to explore the influence of ESG performance on the degree of leverage manipulation of enterprises. The empirical results show that good ESG performance can significantly reduce the degree of leverage manipulation of smes; In terms of mechanism test, ESG weakens enterprises' leverage manipulation motivation by reducing their own credit level, and enterprises' digital transformation inhibits their own leverage manipulation. Further heterogeneity test shows that ESG performance is better in eastern and central regions and state-owned enterprises. It is suggested that the ESG performance of enterprises should be further optimized and relevant supervision should be strengthened.

Analisis Kredit Macet dalam Menentukan Kebijakan Restrukturisasi

This research aims to find out how bad credit is resolved by credit restructuring at BRI Central Unit. This research uses descriptive qualitative research methods. The data source used in this research is primary data obtained from interviews and secondary data obtained from the agency, namely Bank BRI Central Unit. Data collection methods were carried out using observation, interviews and documentation methods. Based on the research results, it shows that resolving bad credit or problematic credit in the BRI Central Unit implements a restructuring policy as an effective and efficient way to reduce the level of bad credit. BRI Central Unit creditors have carried out credit restructuring in accordance with applicable banking laws and internal bank regulations. In settlement using the restructuring method, the creditor adheres to the conditions issued by BI, in accordance with the provisions regarding credit restructuring was first regulated in Bank Indonesia Directors’ Decree No. 31/150/KEP/DIR dated 12 November 1998 concerning Credit Restructuring which was later changed to Bank Indonesia Regulation No. 2/15/PBI/2000 concerning Credit Restructuring

Activity for CUREs to increase student understanding and application of responsible authorship and publication practices.

Professional development of scientists is enhanced by training students in responsible conduct of research earlier in their careers. One aspect of responsible conduct of research is authorship ethics, which concerns granting of credit to those who make intellectual contributions to the research. The activity discussed in this article emphasizes how authorship ethics can be integrated with Course-based Undergraduate Research Experience (CURE) and includes an adaption that could also be used for independent research students. The activity allows students to reflect upon inequalities and problems seen in scientific authorship, including gender bias, failure to credit effort (ghostwriters), and inclusion of authors that did not meaningfully contribute to the work (honorary/gift authorship). Themes seen in student reflections on how they could demonstrate ethics in authorship included: determining authorship by contribution, appropriate attributions on curriculum vitas (CV) and posters, different credit levels, understanding authorship criteria, and tracking contributions. Themes seen in student reflections on the importance of authorship were proper authorship credit distribution, authorship impacting career opportunities, and accountability in research. In the activity, students also created attributions for a poster to be presented from their research. We found that most students were able to create attributions that were correctly formatted, included the same authors, and positioned authors in the same order as other group members, matching what was presented on the finalized poster. We found that students' reflection on authorship and this professionalization of their activities in their CURE led to modest increases in their view of themselves as scientists.

SSESSMENT OF FACTORS INFLUENCING ADOPTION OF NARICT NEEM ORGANIC FERTILIZER AMONG SMALLHOLDER TOMATO FARMERS IN KADUNA STATE, NIGERIA

This study was designed to assess smallholder tomato farmer’s level of awareness of NARICT neem organic fertilizer as well as to determine the factors influencing its adoption by the smallholder tomato farmers in the study area. Four Local Government Areas (LGAs) were randomly selected from the four ADP zones of the state. One village was randomly selected from each of the four selected LGAs and then 11% of the tomato farmers from each of the four villages were randomly selected to arrive at the sample size of three hundred and fifty (350) tomato formers. Both inferential and descriptive statistics were used in the analysis of data. The mean age of respondents was found to be 42yrs for adopters and 35yrs for non-adopters, 96.9% were males for adopters and 22.1% are females for non-adopters respectively. The mean household size for the non-adopters was 11 persons and 8 persons for non-adopters. 94.3% of the interviewed farmers were aware of the NARICT neem organic fertilizer and 5.7% are not aware of the NARICT neem organic fertilizer. It was therefore concluded that even though about 54.3% of the respondents are aware of NARICT neem fertilizer, only about 45.7 % use it. Also, it was found out that the socio-economic and Institutional characteristics of the farmers have significant influence on the adoption of NARICT neem organic fertilizer. The result shows that socio economic factors such as farming experience, educational level, farm size, age and source of credit significantly influence adoption of the fertilizer...

Heterogeneity measurement of the impact of the rural land three rights separation policy on farmers’ income based on DID model

IntroductionAs is well known, the policy of separating three rights is another important milestone in China’s land system reform. This policy has been in effect for 10 years and is of great significance to the livelihoods of rural families. In the implementation of policies, some farmers have obtained more land management rights, but some farmers have temporarily lost their land management rights. Existing research has shown that there is no consensus on the effect rural land three rights separation on increasing farmers’ income, especially in terms of heterogeneity research, which is more scattered.MethodsWe will use the latest national fixed observation point data from the Ministry of Agriculture and Rural Affairs from 2011 to 2020, as well as data from Peking University Treasure Database, West Lake Law Library Database, China Statistical Yearbook, and China Rural Statistical Yearbook. This paper matched the unbalanced panel data of 9,846 rural household samples from 30 provinces except Hong Kong, Macao, Taiwan and Xizang, and conducted an empirical study using the multi time point DID method.ResultThe overall result shows that the policy of three rights separation of rural land can improve the income of farmers, and the impact is more obvious after the promulgation of relevant laws. From the perspective of farmers’ heterogeneity, farmers with more training, food crop planting farmers, and farmers with relatively large land scales are more significantly affected by the policy’s income increase effect.DiscussionScholars have yet to find a good explanation for how the rural land three rights separation affects farmers’ income. In this article, it appears that the three rights separation policy has promoted the increase of farmers’ income through intermediary mechanisms such as investment level, credit level, and non-agricultural employment level.

Short-term effects of productive credit, savings and money demand on Ecuador’s economic growth, 2006–2020

PurposeThis paper aims to determine causal relationships between the level of productive credit, real deposits and money demand – all of them in real terms – and Gross National Product between 2006 and 2020.Design/methodology/approachThe vector autoregressive technique (VAR) was used, where data from real macroeconomic aggregates published by the Central Bank of Ecuador (BCE) are correlated, such as productive credit, gross domestic product (GDP) per capita, deposits and money demand.FindingsThe results indicate that there is no causal relationship, in the Granger sense, between GDP and financial activity, but there is between the growth rate of real money demand per capita and the growth rate of total real deposits per capita.Originality/valueThe study shows that bank credit mainly finances the operations of current assets and/or liabilities. In addition, economic agents use the banking system mainly to carry out transactional and precautionary activities.

Financing Dilemma and Optimization Strategies of High-Tech Enterprises

In recent years, Chinas economic market has been developing rapidly and the number of enterprises has been increasing. However, the development of enterprises needs to rely on the support of capital, due to the high financing threshold of the capital market, ordinary commercial banks and private financial institutions can not fully meet the capital needs of all enterprises in the market. This has, to a certain extent, exacerbated the phenomenon of capital bottlenecks and stagnant development faced by Chinese enterprises, and many even went bankrupt due to poor capital turnover. This paper combines the views and conclusions put forward by a number of professional articles to analyze the status quo and predicament of the company's financing. It is found that high-tech enterprises have problems such as less application of financing methods, high financing costs and unreasonable financing structures. By optimizing the financing structure, improving the company's credit level to expand financing methods, and reducing financing costs, the government has introduced helping policies and other optimization strategies that can promote the healthy and stable development of high-tech enterprises.

Evaluation of multimodal data-driven financial risk prediction methods for corporate green credit

With the rapid economic development and increasingly serious environmental problems, many regions have launched green credit policies. Green credit can reduce the loan interest rate of the environmental protection industry and lower the financing threshold. Traditional risk prediction methods cannot comprehensively evaluate the green credit risk of the enterprise based on the degree of green environmental protection and the industry environment in which the enterprise is located, resulting in the inconsistency between the credit financial risk prediction and the actual results, which increases the bank credit risk. In order to strengthen the management level of green credit and reduce the probability of non-performing loans, a scientific risk assessment method was constructed by using a combination of automatic encoding network and bidirectional long short-term memory neural network model to predict the financial risks of green credit, driven by multi-modal data. Through the study of multimodal data, this paper took green credit financial risk as the research object, aggregated the information of various enterprises to improve the bank’s capital utilization rate, and also promoted enterprises to take the initiative to transform into the direction of green environmental protection. Finally, the experiment proved that multimodal data fusion model was more superior than random forest in risk prediction, reducing the bank’s non-performing loan rate by 3.1% and improving the bank’s risk control level.

Basel III countercyclical bank capital buffer estimation and its relation to monetary policy

This paper proposes a new model to estimate the countercyclical bank solvency capital buffer established in Basel III. The model lies in a flexible semi-nonparametric approach to capture the probability distribution of the capital adequacy ratio, but also a stochastic Ornstein–Uhlenbeck process that incorporates components of the cyclical behavior. We measure the risk of breaching the minimum capital threshold that separates the countercyclical capital buffer from other capital components and analyze its relationship with macroeconomic variables such as interest rates, credit levels, and credit-to-GDP gaps. Furthermore, a vector autoregressive model is estimated to test the existence of the bank-capital channel and the risk-taking channel. The application to Germany and the Netherlands shows that countercyclical buffers are more accurate when skewness and kurtosis are considered and the probability of breaching the regulatory threshold is sensitive to macroeconomic signals. Overall, our model seems to be a useful tool for monitoring prudential policy and as a guide to establish countercyclical capital buffers.

Effect of the sci-tech finance pilot policy on corporate environmental information disclosure—moderating role of green credit

To balance economic development with environmental sustainability, the Chinese government has introduced various initiatives, including the sci-tech finance pilot policy and green credit policy. This study investigates the relationship between sci-tech finance pilot policy, corporate environmental information disclosure and green credit level based on data from China's A-share listed companies during 2008–2022. This research finds that: (1) the implementation of sci-tech finance pilot policy has a positive effect on promoting corporate environmental information disclosure; (2) green credit plays a crucial role in moderating this positive relationship; (3) the pilot policy has a more significant impact on the disclosure of companies in eastern regions and on state-owned enterprises. This research also provides insights for future steps in strengthening and deepening the development strategies for government, financial institutions, and companies.

Can Green Credit Improve the Innovation of Enterprise Green Technology: Evidence from 271 Cities in China

With the promotion of the “carbon neutrality” and “carbon peak” initiatives, green credit plays an important role in helping enterprises to change their high-pollution, high-energy-consumption production methods and establishing a sound green, low-carbon, and circular economic system. This study used spatial correlation analysis and a fixed effects SDM model to examine the spatiotemporal and causal relationship between green credit levels and enterprise green technology innovation in 271 prefecture level cities in China from 2013 to 2021. It found that (1) green credit and green technology innovation levels are both highest in the eastern region, followed by the central region, and exhibit spatial correlation characteristics. The main types of agglomeration are high–high and low–low agglomeration. (2) Green credit has a significant enhancing effect on green technology innovation in enterprises, and this conclusion still holds after robustness and endogeneity tests. (3) There is significant regional heterogeneity in the impact of green credit on green technology innovation, mainly concentrated in the central and western regions. (4) Green credit can significantly increase enterprise R&D investment and enhance the level of green technology innovation through this channel. Finally, some policy implications are provided to the decision-making departments that can be used for reference.

Applications of blockchain technologies in artificial electricity market settlement and clearing

Abstract Blockchain technology is demonstrating vast potential in the realm of distributed energy transactions. This article employs the Ethereum platform to architect an energy trading settlement framework. By incorporating whitelists, authorization mechanisms, and dedicated energy tokens, transactions are rendered more secure and reliable, ensuring the openness, transparency, traceability, and immutability of transaction information. The proposed transaction settlement mechanism automatically updates users' energy imbalances and levies corresponding charges, thereby ensuring strict adherence to transaction contracts. Furthermore, during the settlement phase, smart contracts are employed to autonomously evaluate the creditworthiness of transaction parties, with results recorded on the blockchain. As the credit levels of the entities across the entire network increase, the block generation time for distributed energy trading blockchains becomes shorter, with the block generation time predominantly influenced by the credit rating of the highest-rated entity in the network. Hence, through smart contract design based on energy trading, blockchain technology is utilized to enhance the transparency and security of transaction settlement and clearing. Future research could focus on improving blockchain scalability, integrating emerging technologies, to advance the effectiveness and adoption of blockchain-based energy trading systems.

Analysis of macroeconomic determinants of non-performance in consumer and mortgage loans

We investigate the macroeconomic determinants of non-performing loans (NPLs) in two dynamic unbalanced panels: consumer loans and mortgages, utilizing quarterly data for eight countries from 1992 to 2019. The article assesses which variables are key determinant factors, both in and out-of-sample, and whether they have the same impact in both portfolios. These variables are the lagged ratio of NPLs, credit level, real GDP, short-term real interest rates, real house price indices, and stock indices. We compare different econometric techniques applied to intermediate-sized panels and evaluate forecasting abilities. Results support pooled estimations, and mortgages exhibit higher sensitivities and better forecasting performance.

ASSESSMENT OF THE LEVEL OF STRUCTURE AND CENTRALIZATION OF THE BANKING SYSTEM IN AZERBAIJAN

The purpose of the research is to assess the current state of the structure and level of concentration of the banking system in Azerbaijan based on relevant indicators. The methodology of the research - comparative analysis, logical generalization, syste­matic approach, and mathematical analysis methods were used in the research work. The practical importance of the research - the fundamental analysis inves­tigated in the research can be used to improve economic efficiency and regulate interbank com­petitive relations. The results of the research - the structure of the banking system and the issue of com­pe­ti­tion are important in the regulation of economic relations. Therefore, taking into account the cur­rent trends can be important for stimulating the national economy. The originality and scientific novelty of the research - large, medium and small banks were determined, the level of dollarization of deposits and the level of credit distri­bu­tion in the sectors of the economy were determined.