Analysis on the Solutions to Discredit Problems---A Perspective of the Relationship between Credit and Information & Cost of Discredit
Author(s): DONG Shugong, YANG Zhilin
Pages: 36-39
Year: 2015 Issue: 4
Journal: Journal of Henan Institute of Financial Management
Keyword: credit information; cost of discredit; lack of credit; discredit problems;
Abstract: The expected cost of discredit in China’s current economic activities is less than the true cost of discred-it, and even less than the rational cost of discredit, resulting in the lack of credit to be a common phenomenon in China; and the discredit behavior of economic subjects has seriously affected the development of social economy. The composite value feature of credit determines its importance in economic activities.By analyzing the relationships between information and credit, between the cost of discredit and credit, it can be found that it’s necessary to make economic subjects share credit information by increasing the cost of discredit, and to solve discredit problems by rel-ying on the market, the government and the association.
Pages: 36-39
Year: 2015 Issue: 4
Journal: Journal of Henan Institute of Financial Management
Keyword: credit information; cost of discredit; lack of credit; discredit problems;
Abstract: The expected cost of discredit in China’s current economic activities is less than the true cost of discred-it, and even less than the rational cost of discredit, resulting in the lack of credit to be a common phenomenon in China; and the discredit behavior of economic subjects has seriously affected the development of social economy. The composite value feature of credit determines its importance in economic activities.By analyzing the relationships between information and credit, between the cost of discredit and credit, it can be found that it’s necessary to make economic subjects share credit information by increasing the cost of discredit, and to solve discredit problems by rel-ying on the market, the government and the association.
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