A Study on the Application of Financial Ratio to Model Corporate Lending Credit Ratings

• Main Authors: Yin-Er Lu, 呂英兒
• Other Authors: 林國欽
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/02278606827971245851

碩士 === 台南科技大學 === 商學與管理研究所 === 98 === The reason that banks play an important role in Taiwan financial industry is because lending business is the main source of profitability. However, the lending credit business has the risk of credit default account, consequently, the bank shall not be profit and ratio of overdue loans increased. As a result the financial system is unstability. How to manage credit risk is an important topic of the credit banking industry. To decide approval or rejection of credit risk may rely on personal subjective determination in early financial sector. In the future, the credit risk can be objectively judged by the corporate credit rating. In this study, we first review reference papers with practical experience in the banking industry to find out the probability of default risk variables and establish business credit scoring models. The corporate credit rating can be utilized to help the bank industry in credit risk management. In this study we collected the stock market sample data of "electronic manufacturing" and "traditional manufacturing industries" from 2006 to 2008 in TEJ data base and other data sources. Several corporate credit ratings models with respect to each industry and both industries are proposed. Through the model we can effectively predict the risk of financial crisis, and finally applied to credit pricing and credit approval or rejection of reference, future credit control credit risk. We obtain the following two main findings: 1. The proposed models with explanatory variables financial ratios, coupled with long-term capital to fixed assets ratio, interest coverage ratio, total asset turnover, cash flow, provide effectively improve the model explanatory power and predictive ability. 2. This comprehensive and scholars of literature, combined with practical experience of the researcher found that both of the existing financial Eight financial ratios list of enterprise credit rating can be increased to 20 of this paper is to improve the financial forecast the ratio of the crisis will have a new corporate credit rating table used in credit pricing and credit approval or rejection on the management of loan credit risk.