The Relationship Between Managers’ Background Characteristics And Enterprise Credit Risk

Small and medium-sized enterprises play an important role in all coutries in the world.It’s the important economic pillars.However, the small and medium-sized enterprisesalways have the problem of a shortage of funds with serious financing constraints.How toease the small and medium-sizes enterprise financing constraints is one of the importantissues to be solved. According to the existing literature,the enterprise credit risk level is thekey to access to loans.Management background characteristics play an important role in operating andinvestment decisions. Based on the theory of TMT,credit rationing theory and ralatedliterature, backgroud characteristics will be classified with three aspects includingrisk,reputation and experts characteristics. We will find the influence betweenmanagement background characteristics and credit risk and propose the hypothesis. Basedon the survey data of Jiangsu and Zhejiang provinces’ small and medium-sizedenterprise,we will study the relationship between management background characteristicsand credit risk. The result shows that the managers’ age,gender,education, professionand terms will affect the credit risk in different extent. Considering the level of the smalland medium-sized enterprise credit risk is mainly support to obtain bank finance. Thus, wewill further research the relationship between credit risk and financing availability. Theresult finds that credit risk is negative correlated to financing availability.In this paper,the research shows that management background characteristics generates an importantimpact on enterprises’ credit risk, and further effect on financing availability. The research of this article not only make a guide to be the talents of managers, butalso find a new way to evaluate enterprises’ credit risk. What’s more, it also provide areference basis on choosing the managers.