| dc.description.abstract | The main purpose of this study is to examine the factors that affect recovery rate of bank loans. Our data comes from a commercial bank in Taiwan and defaulted before December 31, 2017. The effective number of samples is 43 firms.
According to correlation analysis, we find that the following variables are significantly and positively correlated with recovery rate: spouse as guarantor, rate of profit growth rate in two years before applying loan, credit amount and turnover ratio in three years before applying loan , cash in two years before applying loan , compensated deposits accounted for loan ratios and loan period. The following variables are significantly and negatively correlated with recovery rate: the marital status of the chairman, rate of profit growth rate in three years before applying loan, credit amount and turnover ratio in one year before applying loan, cash in three years before applying loan, profit rate in two years before applying loan, profit rate in one year before applying loan and total liabilities to net worth ratio in two years before applying loan.
According to the OLS regression analysis, we find that the following variables are significantly and positively correlated with recovery rate: rate of profit growth rate in two years before applying loan, credit amount and turnover ratio in three years before applying loan, compensated deposits accounted for loan ratios and loan period. The following variables are significantly and negatively correlated with recovery rate: credit amount and turnover ratio in one year before applying loan, profit rate in one year before applying loan and total liabilities to net worth ratio in two years before applying loan. | en_US |