Proceedings of the 3d International Conference on Applied Social Science Research

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The Research on Management in Bad Debt Risk Incorporating Macroeconomic Factors: Empirical Evidence from Chinese Listed Manufacturing Companies

Authors
Ting Liu
Corresponding Author
Ting Liu
Available Online August 2016.
DOI
10.2991/icassr-15.2016.11How to use a DOI?
Keywords
Macroeconomic factors; Accounts receivable; Bad debt risk
Abstract

Modeling credit and default risk has been a surge since Moody’s KMV mode is proposed during the past two decades and non-financial factors incorporating fluctuation of capital market and macroeconomic status are taken into account in the subsequent research. Despite these notable efforts, few studies numerically reveal the impact that macroeconomic conditions have on the corporate bad debt risk. In this paper, bad debt provision ratio predicts corporate bad debt risk and the panel data of 501 listed manufacturing companies over the period 2004-2013 is used in the fixed-effects model verified by Hausman test to examine the numerical correlation. The model takes both financial ratios and prevailing macroeconomic factors such as GDP growth index, loan interest rate and their lagged terms into account. It shows that corporate bad debt provision ratio is significantly negative correlated with GDP growth index and is significantly positive associated with loan interest rate, which conforms to the replacement of the commercial credit financing theory and provides evidence to manage bad debt risk better in different status.

Copyright
© 2016, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 3d International Conference on Applied Social Science Research
Series
Advances in Intelligent Systems Research
Publication Date
August 2016
ISBN
978-94-6252-148-3
ISSN
1951-6851
DOI
10.2991/icassr-15.2016.11How to use a DOI?
Copyright
© 2016, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - Ting Liu
PY  - 2016/08
DA  - 2016/08
TI  - The Research on Management in Bad Debt Risk Incorporating Macroeconomic Factors: Empirical Evidence from Chinese Listed Manufacturing Companies
BT  - Proceedings of the 3d International Conference on Applied Social Science Research
PB  - Atlantis Press
SP  - 35
EP  - 38
SN  - 1951-6851
UR  - https://doi.org/10.2991/icassr-15.2016.11
DO  - 10.2991/icassr-15.2016.11
ID  - Liu2016/08
ER  -