Trade credit contracting in a risk-averse supply chain under adverse selection and moral hazard

Trade credit,as an effective tool for integrating and coordinating material,information,and financial flows in supply chain management,is becoming increasingly widespread.We explore how a manufacturer can design optimal trade credit contracts when a risk-averse retailer hides its sales cost information(adverse selection)and selling effort level(moral hazard).We develop incentive models for a risk-averse supply chain when adverse selection and moral hazard coexist,which are then compared with the results under single information asymmetry(moral hazard).Moreover,we analyze the effects of private information and risk-aversion coefficient on contract parameters,selling effort level and the profit or utility of the supply chain.The study shows that when the degree of retailer’s risk aversion is within a certain range,reasonable trade credit contracts designed by the manufacturer can effectively induce the retailer to report its real sales cost and encourage it to exert appropriate effort.Furthermore,we find that the optimal trade credit period,optimal transfer payment,and retailer’s optimal sales effort level under dual information asymmetry are less than those under single information asymmetry.Numerical analysis are conducted to demonstrate the effects of the parameters on decisions and profits.

A Tentative Analysis of the Use of Potential by Commercial Bank in Controlling Credit Scale

This article brings forward the conception of potential and filed potential in bank's competition under the inspiration of law of electric current in electrodynamics. It discusses the impact of potential shifting on commercial bank's credit scale and builds up a model for commercial bank to control the scale by credit pricing and risk policy in a dynamic way, and also gives some advice to domestic commercial bank for improving loan business, aiming to settle down the existing credit management problems.

Trade Credit in the Crisis： Selling or Financing？

The work investigates the use of trade credit in Italy for reasons of a financial nature. The analysis considers Italian small and medium-sized enterprises （SMEs） and investigates, over the years of 2009-2011： the existence of functional relationships between the incidence of trade receivables and payables and corporate profitability; the existence of interdependencies between trade credit policy and trade debt policy; and the coexistence of interchangeable and complementary conditions between trade debts and bank loans and other sources of funding. To verify the research hypotheses, linear regression models on a yearly basis are used and these models are put under observation over the years of 2009-2011. We can conclude that there are interdependencies between trade credit policy and trade debt policy and that trade credit is a source of flexible way of financing, also available in periods of crisis, which has a positive effect on the profitability of SMEs and can be utilized as a complementary and substitute source of financing to bank loans.

Causes and solutions of non-performing loan in Chinese commercial banks

Non-Performing Loan （NPL） is one of the concrete embodiments of credit risk which banks take. NPL is a huge puzzle for Chinese commercial banks, so how to enhance risk management to improve assets quality and lower down NPL are of great importance to those banks.

Research on the Pragmatics of Politeness Principle of Bulletin Board System based on the Differences of Gender and Habits

In this paper, we conduct research on the pragmatics of politeness principle of bulletin board system based on the differences of gender and habits. The openness of the Internet makes all kinds of information received into the vision of an equal chance and web sites in order to improve the hit rate which causes the traffic of commercial purposes such as tabloidization tend to be more negative news spread. To strengthen the research of network language management strategy, it has very important theoretical significance and practical meaning analyzed. Our proposed methodology will help researchers to understand the approaches to use the pragrnatics of politeness.

The Relationship Between Credit Risk Management and Profitability Among the Commercial Banks in Kenya

Banks operate in an environment of considerable risks and uncertainty. Credit risk has always been a vicinity of concern not only to bankers but to all in the business world because the risks of a trading partner not fulfilling his obligations in full on due date can seriously jeopardize the affairs of the other partner. Credit risk management in banks has become more important not only because of the series of financial crisis that the world has experienced in the recent past, but also the introduction of Basel II Accord. The objective of the study was to establish the relationship between credit risk management and profitability in commercial banks in Kenya, Both qualitative and quantitative methods were used in order to fulfill the main purpose of the study. A regression model was used to do the empirical analysis. The results obtained from the regression model show that there is an effect of credit risk management on profitability at a reasonable level. The findings and analysis reveal that credit risk management has an effect on profitability in all the commercial banks analyzed.

Research on logistics model under the trend of cross border E-commerce

The rapid development of cross-border e-commerce has brought a potentially huge market. But due to the complexity of logistics, capital flow, the credit mechanism is involved in cross-border electronic commerce, a serious impediment to the further development of China＇s cross-border B2C e-commerce enterprises. In order to better promote the development of cross-border e-commerce, improve the competitiveness of cross-border e-commerce and logistics services, we must pay attention to the construction of cross-border logistics. Therefore, it can be improved and perfected through logistics control, personnel training and so on.

Risk Factors of Commercial Banks in Malaysia

All kinds of risks exist in the banking industry. In order to cover these exposures, banks must manage these risk factors for better survival in any state of uncertainty. The objective is to examine the relevant risk factors that will affect the sensitivity of commercial banks in Malaysia. These factors are liquidity and interest rate risk, credit risk, market risk, operating and country risk, and exchange rate risk. A survey is conducted to solicit the appropriate factors that will influence the sensitivity of banks. Factor analysis is then used to identify the factors and a regression model is used to establish the associations. The results obtained through this research would be beneficial in constructing an effective solution or strategy to enable banks to minimize risk and possible failure in times of adversity.