2016•Atlantis Press eBooksRequires access
Research on the Effects of the Fixed Asset Investment on the Nonperforming Loans Ratio
LI Guo-yi, Jing Sui （Beijing Normal University）， my correct affiliation is beijing normal university, not Qingdao University of Science and Technology, please correct the current affiliation. Thank you
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Abstract
The research on the effects of changes of the scale of investment on nonperforming loans ratio is conducive to accurately determining the true credit status reflected by the nonperforming loans ratio, and is beneficial to determining the changing trends in nonperforming loans ratio according to the expected investment scale. Based on the analysis of the relationship between the time-series data of China’s total investment in fixed assets and the weighted nonperforming loans ratio data of China’s 16 listed banks from 2000 to 2013, it is shown that the extension of the investment scale has a significant effect on the downward trend in the nonperforming loans ratio. But that does not mean that extending investment scale will necessarily reduce the banks’ nonperforming loans. In order to make sure the conclusions are more reliable and rigorous, further mechanism analysis is necessary.