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Table 1 Definitions of assessment dimensions and elements

From: An empirical research on evaluating banks’ credit assessment of corporate customers

Dimensions Criteria Element definition
A. Operational capability A1. Operational experience The operation team possesses abundant operation and management experience
  A2. Industry experience The operation team has comprehensive experiences regarding industrial growth and decline
  A3. Internal control Operators have the ability of internally controlling management systems
  A4. Successor system A system for the succession of managers has been established
  A5. Media management An enterprise has the ability to employ media communication and to respond to negative coverage
B. Repayment ability B1. Operation growth The operational trend and profit demonstrate continued growth
  B2. Fund position The liquidity fund is sufficient to repay all loans
  B3. Business revenue Business revenue is derived from the enterprise’s business operation
  B4. Operating revenue The profit generated from the operation of the enterprise
  B5. Financial planning The enterprise possesses superior financial dispatch capability to facilitate operational plans
C. Financing capacity C1. Seasoned equity offering (SEO) The enterprise is able to support operating funds through SEO
  C2. Bond financing Corporate bonds are supported by shareholders and investors
  C3. Bank loans Banks agree to offer loans as the working capital
  C4. Capital turnover The enterprise has the capital turnover capacity to regulate the source and application of funds
  C5. Capital expenditure Banks support and provide funds for the enterprise’s long-term capital expenditures
D. Competitive-ness D1. Product market share Products have a large market share and superior sales advantage
  D2. Product leading position Product sales are able to lead and influence market trends
  D3. Price advantage Product price possesses competitive advantage and price leadership in the market
  D4. Product diversification Diverse types of products can obtain consumers’ attention
  D5. Product upgrading ability The enterprise can continue to increase the functions and enhance the performance of products
E. Response ability E1. Industry cycle The enterprise can adapt to changes in the industry cycle and improve product features
  E2. Operational crisis The enterprise is able to respond to and mitigate operational crises
  E3. Ineffective capital turnover The enterprise has the capacity of capital allocation and turnover for solving financial problems
  E4. Operational strategy The enterprise can adjust its operational strategies according to changes in the market and industry cycle
  E5. Operational transformation The enterprise operational style can be transformed according to the economic environment and consumers’ preferences