The Credit Asset of Enterprise Accounts Receivable Pricing Model
Based on the thinking of holism and reductionism, this paper creatively constructed the credit asset pricing model of enterprises’ accounts receivable, namely, the BEST pricing model, and it was demonstrated effectively. The model gave an overall evaluation on the default probability of buyer and en...
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| Format: | Article |
| Language: | English |
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Wiley
2018-01-01
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| Series: | Complexity |
| Online Access: | http://dx.doi.org/10.1155/2018/9695212 |
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| _version_ | 1832559089627955200 |
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| author | Deshun Xu Junhai Ma |
| author_facet | Deshun Xu Junhai Ma |
| author_sort | Deshun Xu |
| collection | DOAJ |
| description | Based on the thinking of holism and reductionism, this paper creatively constructed the credit asset pricing model of enterprises’ accounts receivable, namely, the BEST pricing model, and it was demonstrated effectively. The model gave an overall evaluation on the default probability of buyer and environment, as well as buyer loss given default resulting from the factors including Seller (S), Buyer (B), and Environment (E). The model is also utilized with the optimal control management Technology (T) to maximize the intrinsic value of the credit asset. The paper put forward the Duration of accounts receivable aging, measurement method of dynamic free interest rate, and amended the KMV model to solve the default probability of accounts receivable of listed and nonlisted companies. To evaluate the credit asset risk, the following were selected: three effective financial indicators, seven nonfinancial index clusters, and sixty-three specific nonfinancial index variables of the buyer; one index and eight specific indicators of the seller; and one index and fourteen specific indicators of nonsystematic risk of the environment. Five appropriate hedge parameters are used to control the risk. |
| format | Article |
| id | doaj-art-9c8e3e0ffcef414aab5b96caf2e49d11 |
| institution | Kabale University |
| issn | 1076-2787 1099-0526 |
| language | English |
| publishDate | 2018-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Complexity |
| spelling | doaj-art-9c8e3e0ffcef414aab5b96caf2e49d112025-02-03T01:30:55ZengWileyComplexity1076-27871099-05262018-01-01201810.1155/2018/96952129695212The Credit Asset of Enterprise Accounts Receivable Pricing ModelDeshun Xu0Junhai Ma1College of Management and Economics, Tianjin University, Tianjin 300072, ChinaCollege of Management and Economics, Tianjin University, Tianjin 300072, ChinaBased on the thinking of holism and reductionism, this paper creatively constructed the credit asset pricing model of enterprises’ accounts receivable, namely, the BEST pricing model, and it was demonstrated effectively. The model gave an overall evaluation on the default probability of buyer and environment, as well as buyer loss given default resulting from the factors including Seller (S), Buyer (B), and Environment (E). The model is also utilized with the optimal control management Technology (T) to maximize the intrinsic value of the credit asset. The paper put forward the Duration of accounts receivable aging, measurement method of dynamic free interest rate, and amended the KMV model to solve the default probability of accounts receivable of listed and nonlisted companies. To evaluate the credit asset risk, the following were selected: three effective financial indicators, seven nonfinancial index clusters, and sixty-three specific nonfinancial index variables of the buyer; one index and eight specific indicators of the seller; and one index and fourteen specific indicators of nonsystematic risk of the environment. Five appropriate hedge parameters are used to control the risk.http://dx.doi.org/10.1155/2018/9695212 |
| spellingShingle | Deshun Xu Junhai Ma The Credit Asset of Enterprise Accounts Receivable Pricing Model Complexity |
| title | The Credit Asset of Enterprise Accounts Receivable Pricing Model |
| title_full | The Credit Asset of Enterprise Accounts Receivable Pricing Model |
| title_fullStr | The Credit Asset of Enterprise Accounts Receivable Pricing Model |
| title_full_unstemmed | The Credit Asset of Enterprise Accounts Receivable Pricing Model |
| title_short | The Credit Asset of Enterprise Accounts Receivable Pricing Model |
| title_sort | credit asset of enterprise accounts receivable pricing model |
| url | http://dx.doi.org/10.1155/2018/9695212 |
| work_keys_str_mv | AT deshunxu thecreditassetofenterpriseaccountsreceivablepricingmodel AT junhaima thecreditassetofenterpriseaccountsreceivablepricingmodel AT deshunxu creditassetofenterpriseaccountsreceivablepricingmodel AT junhaima creditassetofenterpriseaccountsreceivablepricingmodel |