Banking Relationships and Corporation's Credit Risk in Taiwan

• Main Authors: Tseng Chieh Yun, 曾潔筠
• Other Authors: Wen Shiou Ying
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/11001084383368027962

碩士 === 長庚大學 === 企業管理研究所 === 94 === The aims of this paper are to collect and analyze the sample of Taiwanese corporate investigating how collateral and banking relationship affect the credit risk of the client corporate, and examine how banking relationship concerns the collateral inquiry by banks. The empirical data includes 127 corporate in Taiwan, covering from 1995 to 2004. The major goals would be fulfilled in the paper: 1) to examine whether the possible factors, such as collateral loan and banking relationship indexes, impact the corporate credit risk; 2) to evaluate the factors that influence the collateral inquiry by the bank. The sample is divided into two parts of normal and default client corporate by using logit model in the first section. And panel data is employed in the second part to analyze the factors influence the collateral inquiry by bank. The empirical results show as the following: 1) the firm with close bank-borrower relationship has a lower probability of default, 2) the firm with more collateral loans has a higher probability of default, 3) the firm with close banking relationship is pledged more collateral because of information lockup problem in Taiwan.