Proposing an enterprise deregistration risk assessment model integrating public credit information and tax information

Authors

Jian-Shan Pan, Shenzhen Public Credit Center, Shenzhen, ChinaFollow
Yuting Rong, Xi’an Jiaotong University, Xi'an, ChinaFollow
Yang Lv, Shenzhen Public Credit Center, Shenzhen, ChinaFollow
Qi-You Lin, Shenzhen Public Credit Center, Shenzhen, ChinaFollow
Jin-Rui Peng, Shenzhen Public Credit Center, Shenzhen, ChinaFollow
Xiao-Fang Cai, National Center for Applied Mathematics-Shenzhen (NCAMS), Southern University of Science and Technology (SUSTech), Shenzhen, ChinaFollow

Abstract

The assessment of firm's credit risk and the prediction of enterprise's default and bankruptcy probability plays an important role in financial organizations and regulatory authorities. Since 1960s, an extensive range of techniques and ratios have been used to predict the default and bankruptcy probability of enterprises. However, default and bakruptcy is not the only form of credit risk. Other forms of firm exit, such as mergers and acquisitions, even malicious cancellation, may happen and lead to credit risk, but have been largely neglected by existing literature. This study proposes an enterprise deregistration risk (including default, bankruptcy, mergers, acquisitions, and malicious cancellation) assessment model integrating public credit information and tax information, considering a broader range of credit risk. The proposed model could help financial organizations and regulatory authorities more comprehensively evaluate the credit risk of enterprises.

Recommended Citation

Pan, Jian-Shan; Rong, Yuting; Lv, Yang; Lin, Qi-You; Peng, Jin-Rui; and Cai, Xiao-Fang, "Proposing an enterprise deregistration risk assessment model integrating public credit information and tax information" (2024). ICEB 2024 Proceedings (Zhuhai, China). 10.
https://aisel.aisnet.org/iceb2024/10