Study on Default Risk Based on LT Model: Evidence from Chinese List Companies
DOI:
https://doi.org/10.3991/ijoe.v9iS4.2726Abstract
The specific credit risks can be efficiently used to defense the damage of default behavior, in which, the core problem is how to evaluate the default probability (expected default frequency, EDF) of entities. This paper measures and predicts the default probability of the listed companies in China including two kinds of sample companies such as special treatment and rating ones with the data during 2008-2009 using LT Model which argues default barrier is endogenous through the optimization of the capital structure. The result shows this approach is proper when measuring short-term default risk of listed companies.
Downloads
Published
How to Cite
Issue
Section
License
The submitting author warrants that the submission is original and that she/he is the author of the submission together with the named co-authors; to the extend the submission incorporates text passages, figures, data or other material from the work of others, the submitting author has obtained any necessary permission.
Articles in this journal are published under the Creative Commons Attribution Licence (CC-BY What does this mean?). This is to get more legal certainty about what readers can do with published articles, and thus a wider dissemination and archiving, which in turn makes publishing with this journal more valuable for you, the authors.
By submitting an article the author grants to this journal the non-exclusive right to publish it. The author retains the copyright and the publishing rights for his article without any restrictions.
