Designing a financing chain model under credit risk disorder

Document Type : Original Article

Authors

1 Department of Accounting, Faculty of Economics and Accounting, Islamic Azad University, South Tehran Branch, Tehran, Iran

2 Assistant Professor of Accounting, Islamic Azad University Tehran South, Iran

10.30495/ijfma.2023.69696.1926

Abstract

Optimizing the financial flow in banks' financing chains against credit risk disorder is one of the important and fundamental demands of the owners of interests in banks,therefore,this research was conducted with the aim of designing a model of the financing chain under credit risk disorder in the keshavarzi Bank.
The research is qualitative-quantitative.The statistical population in the qualitative part of the research is the senior managers of the credit department of the keshavarzi Bank in Tehran.The sampling is purposeful and by snowball method.The interview with ten of them showed theoretical saturation,but the interview with two other experts continued.
Data collection was done by field method by conducting in-depth semi-structured interviews and the design of the model was coded with the foundation data method.Validity of the model was validated by double interaction and reliability by retest.In the quantitative part of the research,among the 320 managers of credit departments of the branches of excellent Bank in Tehran,175 of them were studied by a non-random method and according to the Morgan Chrissy table,with the researcher's questionnaire.
For data analysis,factor analysis and SmartPLS software were used.Validity was checked withAVE and reliability withCR,and the fit of the model was accepted.Fully confirmed.This model introduces corporate banking and risk management as the main core of optimizing the financial supply chain under risk disruption.The comparison of this model with the current performance of the keshavarzi Bank shows that the proposed model with emphasis on advanced tools suitable for industry conditions It provides better optimization of the financing chain.

Keywords

References

Esmailzadeh, A. and Javanmardi, H. (2016) Designing a suitable model for liquidity management and risk prediction in Saderat Bank of Iran. Financial Economics Quarterly, 11(39) pp. 171-191.
 
Hamzai, Arzo (2017). Investigating the relationship between the types of risks in the field of human resources and technological innovation in knowledge-based pharmaceutical companies
 
Javaheri Kopaei, Maeda; Saeed Samadi and Mohammad Vaez Borzani, 2018, a review of the difference in financing methods in developed and developing countries, National Congress of New Findings in Human Sciences, Tehran-Allameh Tabatabai University, Mirdamad Gorgan Non-Profit Institute
Dehghan Manshadi, Sajdeh and Maryam Abbasi Baghbadrani, 2018, Ranking of Factors Affecting Chain Financing (SCF) with AHP Method, International Conference on Management, Accounting, Economics and Banking in the Third Millennium, Tehran, Arvin Alborz Conference Company,
 
Del Afrooz, Narges; Homayun Far, Mehdi; Taghipour Tamijani, Maryam (2018) Credit risk management in banks using a hybrid approach. Kali Engineering and Securities Management, 10(38), 16-95
Soleimani Sedehi, Mojtabi; Pournader, Mehrdakht and Fethullah, Mehdi (2012) Investigating financial management in supply chains and the role of financial institutions in providing related services. Logistics and Supply Chain Scientific-Specialist Monthly, 2., 8-14
 
Soleimani Beshli, Ali (2016) An analysis of the nature of corporate banking", Banking Services Marketing Center, Banking Services Marketing Area.
 
Soleimani Beshli, A.D. (1393) Marketing and Banking", Tehran: Etihad Publishing House
 
Fathullah, Mehdi (2015). Development of supply chain financial management model and chain financing. Journal of industrial engineering research in production systems. Fourth year, Shovareh Nehan, special Yazdhovin and Doazhovin intercollegiate conference
Farhadi, Farhad; Faiz, Ali (2019) Identification and prioritization of factors affecting the evaluation of financial supply chain management (FSCM) using a mixed approach in Isfahan steel production industries. Management Quarterly
 
Mobaraki Pari, Nastern (2016). Presenting a decision model for ranking supply chain financing methods. Master's thesis, Chamran University, Ahvaz
 
Masoumi, Amir Hossein (2014). Designing the risk management system framework in Pasargad Bank with ISO approach. Master's thesis in the field of financial engineering. Khatam University, Department of Financial Engineering
 
Mohammadi, Mehdi and Behrouz Karimzadeh, 2018, Investigating the impact of different financing methods and their prioritization on improving the performance of Shahin Shahr and Mimeh banks, the 5th International Conference on Accounting, Management and Innovation in Business, Tehran
Moghaghaniya, M., Dehghan Dehnavi, M. and Bai, M. (2018) The effect of internal and external factors of the banking industry on the credit risk of banks in Iran. Financial Economics Quarterly, 13(46) pp. 127-144.
 
Midari, A. and Ghorjani, A. (2008) Measuring and improving the business environment. Tehran: Tehran Academic Jihad Publishing Organization
 
Yarahamdi, Mohammad and Abbasi, Ebrahim 2018, selection of crowdfunding candidate projects based on time period, 16th international conference
 Management (scientific-research), Tehran, Al-Zahra University
Bailey, Kate, and Mark Francis. (2008). Managing information flows for improved value chain performance. International Journal of Production Economics 111: 2–12. [CrossRef]
 
Barry, T., Lepetit, L., & Tarazi, A. (2011). Ownership structure and risk in publicly held and privately owned banks. Journal of Banking & Finance, 35(5), 1327-1340.
 
Boissay, Frederic, and Reint Gropp. (2007). Trade credit defaults and liquidity provision by firms. ECB Working Paper No. 753, May 31.
 
Coricelli, Fabrizio, and Igor Masten. (2004). Growth and volatility in transition countries: The role of credit. In Festschrift in Honor of Guillermo A. Calvo. Washington DC: International Monetary Fund, April
 
Caniato, Federico, Luca Mattia Gelsomino, Alessandro Perego, and Stefano Ronchi. (2016). Does finance solve the supply chain financing problem? Supply Chain Management: An International Journal 21: 534–49. [CrossRef]
 
Chen X, Hu C.(2011),''The Value of Supply Chain Finance School of Management'', Fudan University China,www.intechopen.com
 
Chan, T. S., Qi, H. J., Chan, H., Lau, C. ., Li, L. (2013). A conceptual model of performance measurement for supply chains.Management Decision, pp. 635-642.
 
Chan, T. S., Qi, H. J., Chan, H. K., Lau. C. W., & Li, W. L. (2003). A conceptual model of performance measurement for supply chains. Management Decision, 21(7), 645-620
Fabbri, Daniela, and Leora F. Klapper. (2016). Bargaining power and trade credit. Journal of Corporate Finance 41: 66–80. [CrossRef]
 
Fahimnia B, Jabbarzadeh A (2016) Marrying supply chain sustainability and resilience: a match made in heaven. Transp Res E Logist Transp Rev 91:306–324
 
Hartley-Urquhart William R. 2000. “Supply Chain Financing system and method”, US Patent 6, 167, 38.76 Hendricks Kevin B, SinghalVinod R. 2005.“An Empirical Analysis of the Effect of Supply Chain Disruptions on Long-Run Stock.
 
Kristofik, Peter, et al., et al. 2.(2012) FINANCIAL SUPPLY CHAIN MANAGEMENT – CHALLENGES AND OBSTACLES., ACRN Journal of Entrepreneurship Perspectives, Vol. 1, pp. 132-143. Code: 8-2012.ISSN 2224- 9729
 
Kiyotaki, N., & Moore, J. (2002). Balance-sheet contagion. American Economic Review, 92, 62-66.
 
La Porta, R., Florencio, L., & Andrei , S. (2002). Government Ownership of Banks. . The Journal of  inance, 57(1), 265–301. doi:10.1111/1540-6261.00422
 
Lamoureux, Jean-François, and Todd Evans. (2011). Supply chain finance: A new means to support the competitiveness and resilience of global value chains. Available online
 
Liu, M., Zhang, X., & Zhang, C. (2012). The research on diversification, operational performance and risk correlation. Stud. Int. Financ., 8, 59–69.
 
Laeven, L., & Majnoni, G. (2005). Does Judicial Efficiency Lower the Cost of Credit? Journal of Banking & Finance, 29(7), 1791-1812. doi:10.1016/j.jbankfin.2004.06.036
 
Johnson, S., Boone, P., Breach, A., & Friedman, E. (2000). Corporate governance in the Asian financial crisis. Journal of Financial Economics, 58(1-2), 141-186. doi:10.1016/S0304-405X(00)00069-6
 
Liu, C., Xie, J., Zhao, Q., Xie, Q., Liu, C. (2019). Novel evolutionary multi-objective soft subspace clustering algorithm for credit risk assessment. Expert Systems with Applications, 138(C), 112827.
 
Mohammed Ali Wahdan & Mohamed Ashraf Emam (2017). The Impact of Supply Chain Management on Financial Performance and Responsibility Accounting: Agribusiness Case from Egypt. Accounting and Finance Research, Vol. 6, No. 2; 2017
 
Moussawi-Haidar, W. Dbouk, M. Y. Jaber and I. H. Osman, "Coordinating a three-level supply chain with delay in payments and a discounted interest rate," Computers & Industrial Engineering 69, pp. 29-42, 2014
 
Parasuraman. A. Berry. L. Marketing for Services: Competing through Quality. New York: Publisher Free Press. 1991.
 
Pfohl, Hans-Christian, and Moritz Gomm. (2009). Supply chain finance: Optimizing financial flows in supply chains. Logistics Research 1: 149–61. [CrossRef]
 
Pan, M., & Zhang, Y. (2013). Does ownership structure affect the periodic features of lending behaviors in commercial banks? Evidence from banking industry in China. Journal of Financial Research, 4, 29-42.
 
Raghavan and V. K. Mishra, "Short-term financing ina cash-constrained supply chain,"Int. J.Production Economics 134, p. 407–412, 2011
 
Shin, Jang-Sup. "Dynamic catch-up strategy, capability expansion and changing windows of opportunity in the memory industry." Research Policy 46, no. 2 (2017): 404-416
 
Scannella, E., Polizzi, S. (2021). How to measure bank credit risk disclosure? Testing a new methodological approach based on the content analysis framework. Journal of Banking Regulation, 22(1), 73-95.
 
Timme, S. and Williams-Timme, C. (2000): “The financial-SCM connection”,Supply Chain Management Review, May/June, 33-40.
 
Tyler, K. and Stanley, E. (2001), "Corporate banking: the strategic impact of boundary spanner effectiveness", International Journal of Bank Marketing, Vol. 19 No. 6, pp. 246-261
 
TANG Dan， ZHUANG Xin-tian. Manufacturers’ Financing Strategy: Bank Credit， Retailer Credit or Blockchain-Driven SCF[J]. Journal of Northeastern University(Natural Science), 2021, 42(8): 1202-1209
 
Yap, Xiao-Shan, and Bernhard Truffer. "Shaping selection environments for industrial catch-up and sustainability transitions: A systemic perspective on endogenizing windows of opportunity." Research Policy 48, no. 4 (2019): 1030-1047.
 
Wuttke, D, A. Blome,C. Henke.M (2013) , Focusing the financial flow of supply chains:An empirical investigation of financial supply chain management, Int. J. Production Economics 145 (2013)773–789
 

Files

Share

How to cite

Statistics