Lybrary.com: ebooks and download videos Search All  Title  Author 
Home / Nonfiction / Business & Economics / Economics / Macroeconomics

Assessing Default Risks for Chinese Firms:A Lost Cause?

$9.00
| £7.53 | €8.63 | Ca$12.07 | Au$12.25
by Daniel Law & Shaun K. Roache
What is this?DRM-EPUB | by download   add to wish list
Assessing Default Risks for Chinese Firms:A Lost Cause? by Daniel Law & Shaun K. Roache

Assessing default risks for Chinese firms is hard. Standard measures of risk using market indicators may be unreliable because of implicit guarantees, the large role played by less-informed investors, and other market imperfections. We test this assertion by estimating stand-alone 1-year default probabilities for non-financial firms in China using an equity-based structural model and debt costs. We find evidence that the equity measure of default risk is sensitive to a firm’s balance sheet health, profitability, and ownership; specifically, default probabilities are higher for weaker, less profitable, and state-owned firms. In contrast, measures based on the cost of debt seem largely detached from fundamentals and instead determined by implicit guarantees. We conclude that for individual firms, equity-based measures, while far from perfect, provide a better measure of stand-alone default risks than borrowing costs.

To view this DRM protected ebook on your desktop or laptop you will need to have Adobe Digital Editions installed. It is a free software. We also strongly recommend that you sign up for an AdobeID at the Adobe website. For more details please see FAQ 1&2. To view this ebook on an iPhone, iPad or Android mobile device you will need the Adobe Digital Editions app, or BlueFire Reader or Txtr app. These are free, too. For more details see this article.


SHARE  Share by Email  Share on Facebook  Share on Twitter  Share on Linked In  Share on Delicious
or call in the US toll free 1-888-866-9150 product ID: 749662

Ebook Details
Pages: 32
Size: 6.0 MB
Publisher: INTERNATIONAL MONETARY FUND
Date published:   2015
ISBN: 9781513514291 (DRM-EPUB)

DRM Settings
Copying:not allowed
Printing:not allowed
Read Aloud:  not allowed

This product is listed in the following categories:

Nonfiction > Business & Economics > Economics
Nonfiction > Business & Economics > International > Economics
Nonfiction > Business & Economics > Economics > Macroeconomics

These authors have products in the following categories:

Nonfiction > Business & Economics
Nonfiction > Business & Economics > Economic Conditions
Nonfiction > Business & Economics > Inflation
Nonfiction > Business & Economics > Economics
Nonfiction > Business & Economics > International > Economics
Nonfiction > Business & Economics > Economics > Macroeconomics

If you find anything wrong with this product listing, perhaps the description is wrong, the author is incorrect, or it is listed in the wrong category, then please contact us. We will promptly address your feedback.

01/19/2017
© 2017 Lybrary.com