Research On Credit Evaluation Index System Of Property Management Enterprise

Social credit system is the inevitable to market economy.Although in the call of the community and government,social credit system has been well developed,there is still a gap between China’s economic development level and social credit system.It’s necessary to improve the credit evaluation in all fields of society and put forward the mechanism of the reward and punishment.Credit evaluation mechanism also provides an opportunity for the development of the property management industry.Property management has been developing rapidly with the mismatch between social benefit and economic benefit.On one hand,property management services are offered directly to many property owners or users,which belong to the category of “livelihood projects”,thus absorbing a large number of labour and increasing the well-being of citizens.So we can see that property management plays an important role in maintaining social stability.On the other hand,companies tend to offer low-end services,resulting in low industry position.Since the construction of laws and regulations fall behind,the informal legal system is critical to reform and innovation.In socialist credit construction period,the State Council encourages all walks of life to accelerate credit system construction,eliminating bad credit companies.Therefore,the paper establishes the credit evaluation index system of property management enterprises to solve the key obstacles in the industry.Based on extensive literature review and expert investigation,the establishment of credit evaluation index system includes content composition;weight calculation and rating definition.At the end of the paper,a typical enterprise is selected to do empirical research.Firstly,after analysis and evaluation of industry and existing rating practices,the characteristics of the industry are clarified,which is embodied in the first-level index composition.Not only the objective situation,business credit and social responsibility indexes are included,but also the owners and relevant evaluation index is taken into consideration.Further more,24 second-level indexes and 28 third-level indexes are identified.Secondly,weight calculation follows the principle of combining both subjective and objective methods.Expert opinions should be absorbed in a scientific and reasonable way.Expert scoring as the subjective method and entropy weight as the objective method,the paper discusses comprehensive weight calculation.Finally,referring to domestic and international practices credit ratings are defined,while drawing a bottom line of standard for companies.After establishing the credit evaluation index system,based on the empirical research of an experimental enterprise,advice for the application of the index system is proposed:(1)in order to publicize the index system,industry association should act as leaders and maintain a good relationship with third-party evaluation institutions,street offices and the real estate developers;(2)credit assessment results should be connected with cost reduction measures,such as reducing bid bond or taxes,thus increasing enterprise’s enthusiasm to participate in credit evaluation.