Empirical Study Of Financial Non-performing Assets Value Influencing Factors

The large amount of Non-Performance Loans in commercial bank directly threatens a nation's financial soundness and social security. How to accurately evaluate and to effectively manage financial Non-Performance Loans, how to determine the intrinsic value of the Non-Performance Loans and how to identify different factors affecting the valuation has become an urgent task in the world's financial sector and the key and most difficult point facing financial Asset Management Companies and Investment Banks of our country in acquiring and disposing Non-Performance Loans. Solving this problem is extremely important in helping a state, creditors and related parties effectively dispose Non-Performance Loans and reduce losses to the greatest degree. By studying and verifying the valuation factors of financialNon-Performance Loans, this article provided a reference for financial Asset Management Cooperation and Investment Banks in acquiring, managing and disposing Non-Performance Loans to help them improve the Non-Performance Loans disposal efficiency and pricing accuracy.First, by analyzing and studying examples of Non-Performance Loans acquisition, management and disposal and by referring to related articles in the same area by experts, this article advanced the following two inferences: the first is that there are eight factors in evaluating the value of Non-Performance Loans: 1. Loan principal (reflecting the degree of caution when banks making loans); 2. Non-principal ratio (reflecting the length of loan); 3. Form of ownership; 4. Industry difference; 5. Business location; 6.Business operation; 7. Loan repayment method and 8. Litigation situation. The difference in the above mentioned eight valuation factors determines the Non-Performance Loans value. The second is that above-mentioned factors have linear relationship with the value of the Non-Performance Loans and showed the how much each factor affect the valuation by using multiple regression models. Next, in order to test and verify the above-mentioned inferences, the author used 195 samples and tested and verified it by using single variable regression method. The result showed that except for the loan principal, all...