Financing Difficulties Research Articles

Machine Learning Classifiers for Credit Risk Analysis

The modern world is a place of global commerce. Since globalization became popular, entrepreneurs of small and medium enterprises to large ones have looked up to banks, which have existed in various forms since antiquity, as their pillars of support. The risk of granting loans in various forms has significantly increased as a consequence of this, the businesses face financing difficulties. Credit Risk Analysis is a major aspect of approving the loan application that is done by analyzing different types of data. The goal is to minimize the risk of approving the loan for the Individuals or businesses who might not pay back on time. This research paper addresses this challenge by applying various machine learning classifiers to the German credit risk dataset. By evaluating and comparing the accuracy of these models to identify the most effective classifier for credit risk analysis. Furthermore, it proposes a contributory approach that combines the strengths of multiple classifiers to enhance the decision-making process for loan approvals. By leveraging ensemble learning techniques, such as the Voting Ensemble model, the aim is to improve the accuracy and reliability of credit risk analysis. Additionally, it explores tailored feature engineering techniques that focus on selecting and engineering informative features specific to credit risk analysis.

How Supply Chain Finance Helps SME Financing under Blockchain Technology

Financing difficulties have always been a fatal factor restricting the survival and development of small and medium-sized enterprises. With the continuous development of technology, in recent years, relying on blockchain technology to empower supply chain finance has become one of the effective methods for small and medium-sized enterprises to obtain operating funds. This article takes Shaanxi Sun Simiao High tech Pharmaceutical Co., Ltd. and Jiangxi Ganjiu Liquor Industry Co., Ltd. as examples to explore and analyze the innovation of financing loans based on traditional financing loans and blockchain technology. Through research, it has been found that blockchain technology not only solves the problem of risk control between banks and enterprises, but also expands the financing channels of small and medium-sized enterprises with the characteristics of distributed accounting, effectively improving financing efficiency and promoting business development. This article explores how blockchain technology can serve supply chain finance, and further proposes strategies and suggestions to assist small and medium-sized enterprises in financing.

Analysis of the Development and Financing of Small and Medium Enterprises

The number of small and medium enterprises (smes) in a country is huge, their impact on national development is also incalculable, is an important component of the rapid growth of GDP and a strong foundation, but the financing problem has been restricting the development of small and medium-sized enterprises, the analysis of small and medium-sized enterprises in the era of economic downturn financing difficulties how to solve, We should upgrade our financing capacity while improving our own construction. The government should also increase support for financing projects of smes, and introduce certain policies to help smes provide financing services, so as to enhance the financial influence of smes and improve the social environment while developing the economy, through several practical examples, this paper analyzes some problems that small and medium-sized enterprises may encounter in financing in real life, so as to help small and medium-sized enterprises improve the success rate of financing,finally, analyze the future development trend of small and medium-sized enterprises.

Research on the Evolution Path of Supply Chain Financing for Small and Medium-sized Enterprises

Information asymmetry is the main reason why it is difficult and expensive for small and medium-sized enterprises to obtain financing. This paper uses the system dynamics method to construct an evolution model of the supply chain financing system of small and medium-sized enterprises, simulates the dynamic changes of the financing amount of the supply chain financing system of small and medium-sized enterprises, and explores the relationship between various influencing factors and their effects on the financing amount. The research shows that the supply chain financing of SMEs is a complex and dynamic system, and the overall financing amount has a significant cumulative effect, and is more sensitive to the solvency of SMEs, the relationship between core enterprises and financial institutions, government support, and the degree of supply chain information sharing. In order to alleviate the financing difficulties of small and medium-sized enterprises, the government should increase support for the supply chain financing of small and medium-sized enterprises, banks and other financial institutions should strengthen the supply chain financing service capabilities of small and medium-sized enterprises, small and medium-sized enterprises should pay attention to the improvement and upgrading of internal management, and the main body of the supply chain should strengthen cooperation and communication.

Digital inclusive finance: A lever for SME financing?

This paper systematically investigates the relationship between digital inclusive finance and small and medium enterprises (SMEs) financing constraints. We extrapolate the influence model between them from an economic theory perspective and conduct an empirical test using two-way fixed effects and a mediation effect model. The results show: (1) Digital inclusive finance significantly alleviates the financing constraints of SMEs; (2) Compared to the breadth of coverage, the depth of use of digital inclusive finance has a more noticeable effect; (3) The alleviation effect of digital inclusive finance exhibits heterogeneity. It can correct the attribute mismatch, field mismatch, and regional mismatch of traditional financial loan services; (4) Digital inclusive finance alleviates SME financing constraints by reducing financing costs and controlling leverage levels, increasing internal sources of enterprise funds. This research is significant for promoting digital inclusive finance to alleviate the financing difficulties of SMEs in China and provides valuable solutions for other countries to mitigate the “Macmillan Gap” phenomenon.

Research on Credit Risk Management of Inclusive Finance in Bank A

MSMEs play an important role in China's economic system, and the Chinese government has been strongly emphasizing MSMEs' role of the massive wealth they create and the large number of jobs they provide. However, the difficulty of financing for MSMEs has always been a bottleneck restricting the development of MSMEs, for which the Chinese government has called on commercial banks to promote inclusive financial services for MSMEs. As MSMEs themselves have problems such as unstable operation, irregular corporate governance, and dependence on the personal credit of the controller, coupled with the severe macroeconomic situation in recent years, it makes the loan risk of MSMEs higher. Therefore, how to scientifically and effectively manage the risk of small and micro-enterprise loans has become the focus and difficulty of commercial banks' inclusive financial business.

Natural disasters and corporate tax burden: Evidence from chinese energy sector

Given the importance of energy company in disaster reconstruction and economic stability, we focus on the intrinsic link between natural disasters and energy corporate tax burden. This study examines the impact of natural disasters on the energy corporate tax burden using panel data for listed energy companies in China from 2003 to 2021. We robustly find that the higher the number of natural disasters in an energy company's region, the lower the corporate tax burden. The mechanism analysis suggests that the government, motivated by concerns that energy companies are in business distress and facing financing difficulties, is the mechanism by which natural disasters lead to lower energy corporate tax burdens. In addition, the above effects are more pronounced among energy companies that are larger, have a higher market share, and are subject to stronger government intervention. We provide theoretical basis and data support for post-disaster reconstruction and economic stability.

Carbon Market and corporate financing behavior-From the perspective of constraints and demand

In the context of the development of the Low-Carbon Economy, the Carbon Market is an important way to guide enterprises to actively participate in environmental governance and promote enterprises to achieve green transformation. In this study, the first group of electric power industry companies participating in the carbon market on July 16, 2021, was selected as the treatment group. And the difference-in-differences (DID) model was used to investigate the influence of the Carbon Market on corporate financing behavior. This study finds that Carbon Market can significantly promote the level of corporate financing. This is achieved through enhancing credit financing and long-term financing. The heterogeneity analysis shows that the promotion impact is more obvious in state-owned enterprises, start-ups, and smaller enterprises. Additionally, we discuss the above impacts in terms of constraints and demands. In terms of constraints, the increase of external financing difficulty and the squeeze of own financing space will inhibit the promotion of the Carbon Market on the financing level. In terms of demand, corporate investment demand and investors’ attention will enhance the positive impact of the Carbon Market on the financing level. This paper expands the relevant research on the Carbon Market. It reveals the mechanism and effective path of corporate financing behavior in the Low-Carbon Economy. In addition, the paper provides new evidence for the improvement and development of the Carbon Market policies.

How does structural monetary policy affect the high-qualitydevelopment of enterprises

In recent years, due to the difficulty of monetary policy in meeting the needs and development directions of various enterprises, structural monetary policies have been continuously introduced. The direction and accuracy of structural monetary policies can help different enterprises. This paper elaborates on the application of structural monetary policy at home and abroad, the help of structural monetary policy in corporate financing, and the shortcomings of structural monetary policy. It is concluded that the central bank needs to reduce the difficulty of corporate financing, increase trust between financial institutions and small and medium-sized enterprises, and increase the funds of enterprises through loans and discounts, so that enterprises have broader development space.

Enhancing trust transfer in supply chain finance: a blockchain-based transitive trust model

AbstractArtificial intelligence and blockchain technology have become indispensable in the era of the digital economy, particularly in the field of financial financing. However, when it comes to supply chain finance (SCF), existing models primarily focus on risk identification and credit evaluation, neglecting the critical aspects of trust transfer continuity and reliability within the chain. To address this issue, this paper proposes a blockchain-based transitive trust model for SCF, which ensures seamless trust transfer from core enterprises to bottom suppliers during financing enterprise credit evaluation. The model utilizes multi-layer metrics to calculate the comprehensive trust value of underlying suppliers, serving as the basis for credit delivery. Additionally, the model stores transitive signature receivable warrants on the blockchain and utilizes splittable delivery of warrants to underlying suppliers. The model’s rationality and correctness are verified through experimental analysis, with results demonstrating that the transitive trust model enhances Small and Medium-Sized Enterprises’ (SMEs) trust at the bottom of the supply chain, thus alleviating financing difficulties for SMEs.

Supply Chain Finance and Financing Efficiency of Technology-based SMEs

Abstract Shortage of funds and inefficient financing have been the main problems faced by science and technology-based SMEs. Supply chain finance is aiding science and technology-based SMEs in obtaining financing opportunities and reducing the cost and difficulty of financing. This paper constructs a model for assessing financing efficiency with the help of Data Envelopment Analysis (DEA). And combined with the financing constraints commonly encountered by SMEs in the financing process, which affect the financing efficiency, it proposes a mediation effect model to analyze the influence of financing constraints. At the same time, the financing constraints faced by SMEs in science and technology are examined through an empirical model, and the mitigating effect of supply chain finance on financing constraints is analyzed through a model test. In the analysis of financing efficiency, the interest expense and pre-tax debt financing cost of DL science and technology-based companies are decreasing after supply chain finance financing. The interest expense is reduced by 2,009,200,200 in 2022 compared with 2019, and the pre-tax debt financing cost decreases to 6.12%. The proportion of supply chain financing in financing loans is more than 50%, the speed of capital turnover and financing efficiency have significantly improved, and the debt servicing capacity, operating capacity, and profitability have been improved.

Research on the countermeasures for the financing difficulties of small and medium-sized enterprises in the context of digital finance

Research on the countermeasures for the financing difficulties of small and medium-sized enterprises in the context of digital finance

Marine plastic pollution treaty: How should it look like?

MPP, or marine plastic pollution, is a serious issue. The prisoner’s dilemma is preventing nations from acting on this issue. Therefore, nations must draft an MPP treaty in order to address this issue. Inthis paper, I contend that the optimal strategy is top-down because it offers precise recommendations that are simpler for nations to put into practice. I also contend that in order to prevent the top-down strategy from failing, theMPP pact ought to take lessons from the Kyoto Protocol. Subsequently, theMPP pact ought to split the targets into two time frames: short, medium, andlong-term. Along with regulating domestic funding through extended producer responsibility (EPR) and the excise tax on single-use plastics, the MPP treaty should also govern financing difficulties involving global monies funded by rich nations. Lastly, the MPP treaty ought to control the financial and technical support as well as the enforcement procedure.

Have credit risk mitigation warrants eased the difficulty and expensive of financing for private enterprises?

ABSTRACT The Credit Risk Mitigation Warrants (CRMW), as the primary tools for supporting bond financing for Chinese private enterprises, have the capacity to guide the market in reducing risk concerns associated with private enterprises and alleviating their financing challenges. Consequently, CRMW has garnered sustained attention and support within the bond market. Few empirical studies have analyzed the effects of CRMW on private enterprise bonds in the Chinese market. Using a sample of 1,171 bonds issued by 210 private firms between 2018 and 2020, we conducted an empirical analysis to examine CRMW’s effect on the enthusiasm for private enterprise bond subscriptions and issuance costs. We find that private enterprises issuing bonds with CRMW can significantly increase the enthusiasm for bond subscriptions. CRMW’s effects in expanding such enthusiasm are more evident among high-rated private enterprises. The CRMW is more effective in non-listed, smaller-asset enterprises, while the effects of reducing bond issuance costs are more significant in lower-rated private enterprises. This study provides precise empirical evidence for lowering the difficulty of private corporate bond financing for CRMW. The study also addresses the debate in existing literature regarding whether CRMW reduces the cost of debt financing for private enterprises, and provides references for policy improvements related to CRMW.

Political Connections, Corporate Transparency, and Investor Protection

This paper examines the impact of political connections of listed companies on the level of investor protection using China A-share listed companies as research samples from 2010 to 2021. The research reveals that corporate political connections can enhance the level of investor protection, and this conclusion holds true after a series of robustness tests. Mediation mechanism tests indicate that political connections, by increasing corporate transparency, contribute to the improvement of investor protection. This study provides important insights for safeguarding investor interests, boosting investor confidence, and reducing the difficulty of corporate financing.

An ExpTODIM-GRA based multiple attribute group decision-making method for development level evaluation of digital inclusive finance under intuitionistic fuzzy circumstances

In recent years, due to the rapid development of internet technology, the integration process of digital technology and financial services has accelerated. Digital Financial inclusion has emerged as the times require, becoming an important force to promote private enterprises to get out of financing difficulties. The development level evaluation of digital inclusive finance is a classical multiple attribute group decision making (MAGDM) problems. Recently, Recently, the Exponential TODIM(ExpTODIM) and (grey relational analysis) GRA method has been used to cope with MAGDM issues. The intuitionistic fuzzy sets (IFSs) are used as a tool for characterizing uncertain information during the development level evaluation of digital inclusive finance. In this paper, the intuitionistic fuzzy Exponential TODIM-GRA (IF-ExpTODIM-GRA) method is built to solve the MAGDM under IFSs. In the end, a numerical case study for development level evaluation of digital inclusive finance is supplied to validate the proposed method. The main contributions of this paper are outlined: (1) the ExpTODIM and GRA method has been extended to IFSs; (2) Information Entropy is used to derive weight under IFSs. (3) the IF-ExpTODIM-GRA method is founded to solve the MAGDM under IFSs; (4) a numerical case study for development level evaluation of digital inclusive finance and some comparative analysis are supplied to validate the proposed method.

The Effects of Interest Rate Liberalization on Small and Medium Enterprises

The financing difficulties faced by small and medium enterprises (SMEs) are major problems hindering the development of the Chinese economy. These challenges not only impede the growth potential of SMEs but also limit innovation and job creation, posing a significant hurdle to overall economic progress in China. This article first presents the financing difficulties of SMEs and examines the reasons causing these difficulties. Then, this article briefly introduces the interest rate liberalization reform in China. After that, this article discusses three effects of interest rate liberalization on SMEs. The first effect is the reduction of the financing cost; the second effect is the increase of accessibility of loans; and the last effect is the transfer of credit resources from large and state companies to SMEs. Then, suggestions on how to tackle the financing difficulties are provided from the perspective of SMEs, financial institutions, and authorities respectively. Lastly, this article concludes that interest rate liberalization reform is conducive in helping enterprises and economic recovery.

Types and Methods of Assessing the Value of Intellectual Property Pledge Financing

China has a large stock of intellectual properties and a strong capacity for indirect financing. In the process of shifting from factor inputs supporting high economic growth to technological innovation contributing to high-quality economic development, intellectual property pledge financing plays an extremely important role. Moreover, as a new financing channel, intellectual property pledge financing can effectively alleviate the financial pressure on the development of small and medium-sized enterprises. Additionally, intellectual property pledge financing can also help promote the transformation of knowledge achievements and alleviate the financial problems of enterprises to a certain extent. Although China's intellectual property pledge financing has seen rapid development in recent years, there is still a large gap compared to the number of intellectual properties and the financing needs of enterprises. This is mainly attributed to the easy depreciation of intellectual properties, instability of rights, and other characteristics, which cause difficulties in assessing the value of intellectual property pledge financing and aggravates the risk and difficulty of intellectual property pledge financing. Therefore, how to scientifically assess the value of intellectual properties for the purpose of pledge financing has become an issue worthy of in-depth study and exploration at this stage.

Impact of supply chain finance on the performance of agricultural small and medium-sized enterprises: Evidence from Chinese listed companies

In the Chinese economic system, agricultural small and medium-sized enterprises (SMEs) play a key role in promoting agricultural development. The problem of financing difficulties for agricultural SMEs has seriously constrained their economic development. The purpose of this paper is to explore the role of supply chain finance in solving the financing constraint problem of agricultural SMEs, which in turn affects the performance level of enterprises. By constructing a theoretical model and selecting the data in Chinese National Small and Medium Enterprises Stock Transfer System from 2011 to 2022 for mediation effect regression analysis, the results show that there is a stable positive correlation between supply chain finance index and return on net assets (β = 0.585, p < 0.05); there is a stable negative correlation between supply chain finance and financing constraints (β = – 0.216, p < 0.05); there is a stable negative correlation between financing constraints and return on net assets (β = –0.893, p < 0.001). This study examines the impact of supply chain finance on the performance of agricultural SMEs from the perspective that supply chain finance can alleviate financing constraints. The results of this study suggest to business stakeholders that agricultural SMEs can choose supply chain finance as a better choice of financial strategy, and the government can formulate corresponding policies to further develop preferential and supportive policies for supply chain finance.

Exploring the Emerging Financial Development Model of "Blockchain + Credit Guarantee" Based on Information Asymmetry Theory

Small and medium-sized enterprises (SMEs) are an important part of relieving the pressure of social employment and increasing the development and vitality of the world economy. However, the disadvantages of SMEs in terms of their scale and normality have led to problems such as difficulties in financing during their development, which have increased the difficulty of their development and growth. To address this social reality, it is urgent to establish a perfect credit guarantee system for SMEs. With the continuous development of China's information technology, financial institutions are also transforming, providing new ideas for the improvement of the credit guarantee system for SMEs. Over the years, the implementation of "blockchain + credit guarantee" has brought unprecedented revolutionary impact to the financial industry. It has not only greatly expanded the application scope of blockchain technology, but also greatly improved the credit guarantee mechanism for SMEs, greatly enhanced their financing efficiency, and effectively reduced their risks, laying a solid foundation for their long-term stable development. To better support the development of SMEs, we should accelerate the digital transformation to realize the effective allocation of financial resources and enhance the market competitiveness of SMEs, to better meet their economic and social development needs.