The influence of asset-liability ratio on enterprise value -- empirical analysis based on threshold regression
Maoli Ji, Bo Huo
Available Online 20 December 2019.
- https://doi.org/10.2991/aebmr.k.191217.135How to use a DOI?
- Asset-liability ratio, The enterprise value, Threshold regression
- 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.
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 -