Management and control of debit financing risk: A new perspective

Debt operating has dual characters, it could bring along both financial lever income and financial loss to the enterprises because of the financial leverage. Too low debt lever will lose the income of it, but too high will be risky. This article tries to find out the best liability structure that ke...

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Bibliographic Details
Published inJournal of statistics & management systems Vol. 24; no. 4; pp. 865 - 872
Main Author Tu, Hongxing
Format Journal Article
LanguageEnglish
Published New Delhi Taylor & Francis 19.05.2021
Taru Publications
Subjects
Debt financing
Financial risk
Income
Leverage
Liabilities
Management
Risk management
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Summary:Debt operating has dual characters, it could bring along both financial lever income and financial loss to the enterprises because of the financial leverage. Too low debt lever will lose the income of it, but too high will be risky. This article tries to find out the best liability structure that keeps a highest income and least risk. Based on the result, it helps business operators to make financial decision.
ISSN:0972-0510
2169-0014
DOI:10.1080/09720510.2021.1884382