Gengzhong Feng

Learn More
0377-2217/$ see front matter 2012 Elsevier B.V. A ⇑ Corresponding author. E-mail address: (W. Jiang). Classical inventory theory often assumes no discrepancies between recorded inventory and actual inventory. However, inventory records are usually inaccurate due to many reasons in practice.(More)
Determining appropriate loan-to-value ratios of commodity collateral can make banks mitigate credit risk of inventory financing effectively. Based on reduced-form approaches, this paper establishes a basic model on the determination of loan-to-value ratios. In this model, some factors, such as exogenous default probability, price volatility of commodity(More)
This paper constructs a contract-theory model to investigate how an MSSP’s (Managed Security Service Provider) operating characteristics of cost efficiency, multiple clients, security externality and firms’ information nature affect the MSSP’s strategic decisions, including the contract structure and the optimum investment level for firms. The analysis(More)
To determine appropriate loan-to-value ratios of inventory collateral can make bank mitigate credit risk of inventory financing effectively. Based on reduced-form approaches, this paper assumes that the default of the enterprise is exogenous and follows a doubly stochastic Poisson process, and then provides a model on the determination of loan-to-value(More)
China's bulk stock electronic marketplace has developed fast in recent years, especially in the steel industry which close to the national industry. The forward electronic trading mode is becoming riper with the volume of steel trading in electronic marketplace sharing more market. This study analyzes the dynamic relationship between the forward price of(More)
B2B spot market has grown rapidly and become an effective trading channel for commodity products. Besides long-term contract procurement from conventional suppliers (forward and option), a buyer can procure or sell commodities at any time in B2B spot market to adjust her inventory level. However, spot prices are generally volatile and the market is(More)
In China, the bank is facing a challenging design problem of credit contract based on inventory financing. The paper studies credit contracts based on stock document mortgage with two risk-neutral gamers. Our model includes the case of a bank offering loan to a cooperative retailer who mortgages its inventory to the bank to finance more inventory. The(More)
  • 1