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

DOI

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.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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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  - 10.2991/aebmr.k.191217.135
ID  - Ji2019
ER  -