The Application Of Balanced Scorecard To Hunan Changda Investment Company's Clients Credit Rating

Dependent on the basic principles of balanced scorecard (BSC), credit managing theory, financial analysis theory and reviewing of the research of BSC, Changda investment group'sclients credit rating is studied. A new method of credit rating--balanced scorecard isintroduced. According to the business strategy, the enterprise's credit rating is gotten from the clients' financial situation, clients, operational ability and growth ability.The author studied the situation that Changda Investment Corporation is facing. Credit in China and its reason, the shortcoming of the current credit rating and the significance of setting up a new system of credit rating are studied. Based on the theory of balanced scorecard, theory of credit and theory of finance, according to the experience of other enterprises and the study of the researchers, a new index system of enterprise's credit rating is built to evaluate the credit rating on the clients' financial situation, clients, operational ability and growth ability. Analytical Hierarchy Process (AHP) is used to determine the weight of each index. Maximum Difference Normalization Method is used to revise the data. According to the given points by experts, the credit rating will be calculated. The credit rate is defined to ten grades. One of Changda Investment Group's clients is studied as a case. And the results are compared with the results given by the commercial bank. The result tells us that BSC is more objective and comprehensive than the traditional methods used by commercial bank.As a new method, balanced scorecard is applied to credit rating in this thesis. The author tried to introduce a new reasonable, objective, scientific, comprehensive credit rating method and wish it can be applied to more enterprises.