Proceedings of the 2nd International Conference on Mathematical Statistics and Economic Analysis, MSEA 2023, May 26–28, 2023, Nanjing, China

Research Article

Impact of Macroeconomic Changes on Corporate Credit Risk in the 5G Industrial Chain: Evidence From China

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  • @INPROCEEDINGS{10.4108/eai.26-5-2023.2334461,
        author={Xiangwei  Lin},
        title={Impact of Macroeconomic Changes on Corporate Credit Risk in the 5G Industrial Chain: Evidence From China},
        proceedings={Proceedings of the 2nd International Conference on Mathematical Statistics and Economic Analysis, MSEA 2023, May 26--28, 2023, Nanjing, China},
        publisher={EAI},
        proceedings_a={MSEA},
        year={2023},
        month={7},
        keywords={china 5g industrial chain credit risk management macroeconomy},
        doi={10.4108/eai.26-5-2023.2334461}
    }
    
  • Xiangwei Lin
    Year: 2023
    Impact of Macroeconomic Changes on Corporate Credit Risk in the 5G Industrial Chain: Evidence From China
    MSEA
    EAI
    DOI: 10.4108/eai.26-5-2023.2334461
Xiangwei Lin1,*
  • 1: Zhejiang Agricultural & Forestry University
*Contact email: LuxurLeen@126.com

Abstract

This study investigates the impact of various macroeconomic factors on the credit risk of listed firms in the 5G industrial chain in China using the KMV model,with a regression analysis of the financial data of 20 A-share listed companies in China's 5G industrial chain from the construction period to the application period, from 2011 to 2019. The results show that the money supply, inflation rate, and the exchange rate of RMB against USD have the most substantial impact on the credit risk of China's 5G listed companies. In addition, the results indicate that the Sino-US trade war had a positive impact on China’s economic downturn, with a negative impact on the credit risk of firms in China’s 5G industrial chain. However, the Sino-US trade war also harmed the exchange rate of RMB to USD, thus benefiting Chinese companies’ foreign trade and reducing corporate credit risk. Therefore, the Sino-US trade war’s impact on corporate credit risk in China's 5G industrial chain is twofold.