Study Of Chinese Commercial Enterprises Credit Rating

The development of market economy in China has a short period of time. Enterprises have no strong sense of credit, which caused many kinds of unaccredited phenomena. So credit assessment is very important and significant. The author tried to study the credit problems through investigating business enterprises in China. Currently, domestic residents are gradually used to shopping in the supermarket or shopping mall. Especially after China' s entry into WTO, Chinese people' s consuming mode has been changed by the advanced consumption conception and service systems of foreign retail business. Credit problems might emerge from Chinese business enterprises after strong strike. From this point of view, this study has strong practical meaning.There are many people and institutes studying enterprise' s credit. However, only few have general data and relatively mature credit assessment system. Since the market economy has just established in China, we should study credit problems combining with the situation of our country. The model and assessment approach should be linked with the characteristics of the industry. In the meantime, maneuverability should also be considered. The author tried to establish the Logit model through studying Chinese business & trade companies listed in the stock market and comparing with other credit assessment approaches. The prospering index of business enterprises would be taken into this model. The author put emphasis upon the quantitative analysis on the basis of qualitative study. The model was proved with good validity.The proper prediction of enterprise's credit has important meaning not only to protect the interests of investors and creditors, but also to prevent the deterioration of enterprise' s credit as well as the government' s supervision to the market risks.