DocumentCode
3182738
Title
Financial risks and countermeasures of debt financing
Author
Xiao, Wenfeng
Author_Institution
City Coll. of Dongguan Univ. of Technol., Dongguan, China
fYear
2011
fDate
8-10 Aug. 2011
Firstpage
2104
Lastpage
2107
Abstract
Debt financing means that financing by debt is an important source of business. Debt financing must pay certain price. Both long-term loan and issuing bonds have to pay costs of borrowing according to the stipulation interest rate. Debt financing is the inevitable choice for the enterprise to collect funds under the market economy condition. The global economy is developing rapidly and more and more enterprises begin large-scale development service, which needs the fixed capital source. Therefore, enterprises have to rely on debt financing. This article has enumerated the financial risks of debt financing, and analyzes the determination of best capital structure, finally, in view of the problems, puts forward the corresponding proposals and the countermeasures.
Keywords
financial management; industrial economics; risk management; capital structure determination; debt financing; financial risk; interest rate stipulation; issuing bonds; large-scale enterprise development service; long-term loan; market economy condition; Companies; Economic indicators; Finance; Investments; Profitability; Capital Structure; Debt Financing Finance Risks; Suggestion and Countermeasure;
fLanguage
English
Publisher
ieee
Conference_Titel
Artificial Intelligence, Management Science and Electronic Commerce (AIMSEC), 2011 2nd International Conference on
Conference_Location
Deng Leng
Print_ISBN
978-1-4577-0535-9
Type
conf
DOI
10.1109/AIMSEC.2011.6011074
Filename
6011074
Link To Document