Publishing Industry Credit Credit Risk Management

Nowadays, China' s publishing industry is experiencing a crucial transformation and especially the merger between the upstream and downstream has become the main trend in the industrial chain in recent years. According to the requirements of General Administration of Press and Publication, the majority of the major ten-plus press and publishing companies should meet the requirements of financing on the stock market and more than half of the companies should complete the preparation work of getting listed on the stock market within three years.General Administration of Press and Publication encourage qualified publishing companies to be listed on the market. That moves made by the book industry have aroused the great interest of the whole society and the financial world in particular. However, as a special industry which combines both culture and economy, the publishing industry is confronted with credit problem; especially the huge credit risks brought by credit sale, which hind the system reform and financing process and even undermine the sustainable development of the publishing industry itself.The market mechanism hasn' t been totally established in China' s publishing industry by now. Low level of standardization and management in the industry causes the deficit of credit system and lack of sense of credit in the publishing chain. Debt figure in the industry has been rising year by year. Huge amounts of credit sales lead to debt lost of 20 billion yuan, accounting for 40% of the annual output value of the industry. Deficient credit managing of credit sales leads to an insufficiency of funds from the upstream to downstream companies. Even worse, the overdue account has put in danger the whole industrial chain and brought grave harm to the economy and culture. In other words, the credit risk brought by sales on credit has become the bottleneck of the industry' s development. Therefore, finding a scientific way to solve the risks of sales on credit in publishing industry proves to be a pressing problem.Based on the theory of commercial credit management and detailed data, tailor-made according to the publishing practice and guided by a systemic theory, the article tends to make a close study of the publishing industry and sales on credit by using the quantitative and qualitative analysis, positive and normative analysis as well as comparative analysis.The article interprets the reasons of sale on credit and the risks brought by this. It also probes into the credit management and the deeper reasons buried underneath; makes a brief description of the absence of credit in the book industry and demonstrates a simple model; suggests some ways to tackle the credit problem by regarding the publishing industry as a system. Based on the management experience in the developed countries, the article also introduces the self-scrutinizing technology and method to strengthen the credit management and demonstrates the roles and responsibilities of related social organizations in the building of the credit system in the publishing industry, providing some instructive suggestions on credit management to China' s publishing industry.