The influence of external factors on the credit risk in leasing industry
Credit risk consists of probability of non-return, which may be in the form of bankruptcy or a decrease in financial and credit situation of the lessee. The variables are extracted from the Central Bank. In this study the independent variables are measured with six factors that are called external f...
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| Format: | Article |
| Language: | English |
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Growing Science
2016-03-01
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| Series: | Management Science Letters |
| Subjects: | |
| Online Access: | http://www.growingscience.com/msl/Vol6/msl_2016_3.pdf |
| _version_ | 1818361958034833408 |
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| author | Gholamreza Farsad Amanollahi |
| author_facet | Gholamreza Farsad Amanollahi |
| author_sort | Gholamreza Farsad Amanollahi |
| collection | DOAJ |
| description | Credit risk consists of probability of non-return, which may be in the form of bankruptcy or a decrease in financial and credit situation of the lessee. The variables are extracted from the Central Bank. In this study the independent variables are measured with six factors that are called external factors. The external factors are size of leasing, ownership interest rate, foreign exchange, inflation, and Gross Domestic Product (GDP). The present study uses related observations from 31 leasing companies from 2008 to 2013 to find out the determinants of the credit risk. The combined evidences suggest that internal factors such as upfront prepayment, credit insurance contract, security deposits, time and period contract, collateral and guarantees, contract amount, as well as external factors such as interest rate, inflation, foreign exchange, Gross Domestic Product infrastructure, and credit risk are determinants in the policy-making process involving the industrial leasing. Furthermore, the empirical results indicate the size of leasing and ownership are not the significant determinants of credit risk. The results of this dissertation provide several implications for policy-makers in the leasing industry. Policy-makers will be better off employing different procedures for leasing activities in the leasing industry. |
| first_indexed | 2024-12-13T21:24:57Z |
| format | Article |
| id | doaj.art-76f68203547f40acbdba3e9653984f3f |
| institution | Directory Open Access Journal |
| issn | 1923-2934 1923-9343 |
| language | English |
| last_indexed | 2024-12-13T21:24:57Z |
| publishDate | 2016-03-01 |
| publisher | Growing Science |
| record_format | Article |
| series | Management Science Letters |
| spelling | doaj.art-76f68203547f40acbdba3e9653984f3f2022-12-21T23:30:58ZengGrowing ScienceManagement Science Letters1923-29341923-93432016-03-016325125810.5267/j.msl.2016.1.003The influence of external factors on the credit risk in leasing industryGholamreza Farsad Amanollahi Credit risk consists of probability of non-return, which may be in the form of bankruptcy or a decrease in financial and credit situation of the lessee. The variables are extracted from the Central Bank. In this study the independent variables are measured with six factors that are called external factors. The external factors are size of leasing, ownership interest rate, foreign exchange, inflation, and Gross Domestic Product (GDP). The present study uses related observations from 31 leasing companies from 2008 to 2013 to find out the determinants of the credit risk. The combined evidences suggest that internal factors such as upfront prepayment, credit insurance contract, security deposits, time and period contract, collateral and guarantees, contract amount, as well as external factors such as interest rate, inflation, foreign exchange, Gross Domestic Product infrastructure, and credit risk are determinants in the policy-making process involving the industrial leasing. Furthermore, the empirical results indicate the size of leasing and ownership are not the significant determinants of credit risk. The results of this dissertation provide several implications for policy-makers in the leasing industry. Policy-makers will be better off employing different procedures for leasing activities in the leasing industry.http://www.growingscience.com/msl/Vol6/msl_2016_3.pdfLeasingCredit riskExternal factors |
| spellingShingle | Gholamreza Farsad Amanollahi The influence of external factors on the credit risk in leasing industry Management Science Letters Leasing Credit risk External factors |
| title | The influence of external factors on the credit risk in leasing industry |
| title_full | The influence of external factors on the credit risk in leasing industry |
| title_fullStr | The influence of external factors on the credit risk in leasing industry |
| title_full_unstemmed | The influence of external factors on the credit risk in leasing industry |
| title_short | The influence of external factors on the credit risk in leasing industry |
| title_sort | influence of external factors on the credit risk in leasing industry |
| topic | Leasing Credit risk External factors |
| url | http://www.growingscience.com/msl/Vol6/msl_2016_3.pdf |
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