The Study Of Contractor’s Financing Credit Risk Evaluation Based On Financial Outsourcing

With the government straighten-out-operations about the financing platform, themobilization of funds for infrastructure construction is currently becoming a pressing issue.The contractors, those who play a significant role in the construction industry with a rapiddevelopment, now are provided with the capability of financing. However, the financial bankswould not provide contractors credit loan without credit risk evaluation for financing. Basedon the characteristic category of financial operation and construction, the financial banks havesome problems on how to solve the evaluation on the credit risk of contractor’s financing.Therefore, from the perspective of the financial services outsourcing, the thesis would dosome research on financing model that the third party conducts some operations on evaluatingthe contractors’ financial credit risk. This model would become the development trend for thefinancial bank to expand their business scope and discover effective service methods.Based on the previous research and analysis of existing documents, the thesis woulddefine the conception on the third party and its functions. Then, a conceptual model, whichwould conduct a deep research in contractor financing index system on credit risk evaluationand evaluating model, is formed with Asymmetric-information Theory and Principal-agentTheory.Firstly, the literature and the development status of the service outsourcing and financialservices outsourcing is reviewed and analyzed. With the analysis and formation of serviceoutsourcing, the thesis would define the concept of financial outsourcing and analyze thebusiness segments. The necessary, characters and the enterprise function of the third partywould be drawn on the basis of introduction about the three perspectives of service subject,object and target.Secondly, the theory of asymmetric information and principal-agent theory are utilized astheory foundation to discover the source of business bank for financial service outsourcing.On the basis of definition of contractor, which is the research target, the thesis analyzes thefinancing feasibility from the three perspectives of policy, literature and practice to takeconceptual form of contractor financing model, which is shaped from the comparison betweenproject financing and supply-chain financing on the operation. During this procedure ofcontractor financing, credit factors is analyzed to figure out the causes for financing risk.Thirdly, according to the previous shaped conceptual model of contractor financing andthe analysis for credit factors, some methods, such as Information Precipitation,Questionnaires and Pareto charts etc, are utilized to analyze and investigate factors to buildthe evaluation index system of static credit risk through the risk evaluation Index of contractorfinancing after three rounds of identification and assortment. Then, Results Path analysis byAMOS indicates illustrates the effectiveness of the index system. Fourthly, the wide used credit risk evaluation method presently is analyzed through theperspectives of the principles, advantages and disadvantages. Combined with the built creditrisk evaluation system, Entropy Method and Support Vector Machine are selected ascontractor financing credit risk evaluation methods to construct the financing credit riskevaluation model based on the time dimension in order to achieve the whole process ofcontractor financing credit risk evaluation.