• 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