Proceedings of the 2019 International Conference on Economic Management and Cultural Industry (ICEMCI 2019)

The influence of asset-liability ratio on enterprise value -- empirical analysis based on threshold regression

Authors
Maoli Ji, Bo Huo
Corresponding Author
Bo Huo
Available Online 20 December 2019.
DOI
https://doi.org/10.2991/aebmr.k.191217.135How to use a DOI?
Keywords
Asset-liability ratio, The enterprise value, Threshold regression
Abstract
In order to maximize enterprise value, effective financial management is needed. Therefore, it really matters to conduct a study of the relation between asset-liability ratio and enterprise value. This paper chooses the data of Guoted Companies in China from 2016 to 2018, do the studies of the correlation between asset-liability ratio and enterprise value with the threshold regression, and analyzes the debt-to-assets ratio that affects on enterprise value .Through empirical analysis, the asset-liability ratio of enterprises has a positive effect on the value of enterprises, but there is a threshold of asset-liability ratio. Therefore, the increase of the enterprise’s asset-liability ratio can improve the value of the enterprise, but it can not increase the enterprise’s debt-to-assets ratio indefinitely. Therefore, enterprises should borrow money rationally for the sake of maximizing the worth of enterprises.
Open Access
This is an open access article distributed under the CC BY-NC license.

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Cite this article

TY  - CONF
AU  - Maoli Ji
AU  - Bo Huo
PY  - 2019
DA  - 2019/12/20
TI  - The influence of asset-liability ratio on enterprise value -- empirical analysis based on threshold regression
BT  - Proceedings of the 2019 International Conference on Economic Management and Cultural Industry (ICEMCI 2019)
PB  - Atlantis Press
SP  - 756
EP  - 759
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.191217.135
DO  - https://doi.org/10.2991/aebmr.k.191217.135
ID  - Ji2019
ER  -