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 |