Structural Analysis of the Factors Influencing the Financing of Forestry Enterprises Based on Interpretive Structural Modeling (ISM)

Through the collection of related literature, we point out the six major factors influencing China's forestry enterprises' financing: insufficient national support; regulations and institutional environmental factors; narrow channels of financing; inappropriate existing mortgage-backed approach; forestry production characteristics; forestry enterprises' defects. Then, we use interpretive structural modeling (ISM) from System Engineering to analyze the structure of the six factors and set up ladder-type structure. We put three factors including forestry production characteristics, shortcomings of forestry enterprises and regulatory, institutional and environmental factors as basic factors and put other three factors as important factors. From the perspective of the government and enterprises, we put forward some personal advices and ideas based on the basic factors and important factors to ease the financing difficulties of forestry enterprises.