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Analysing Leverage Risk and Measuring Optimal Debt Ratio for State-owned Companies

이승용 1

1한국석유공사

Accredited

ABSTRACT

Debt management of state-owned companies is important as the government fundamentally takes responsibility and bears default risk. After analyzing the leverage risk and the default risk of state-owned companies, I concluded that more than 40% of public enterprises are exposed to serious financial risks while 80% of them are likely to fall into financial distress. This study suggests that state-owned companies should improve their financial stability, as debt ratios exceed optimal debt ratios. (very well written paragraph)

Citation status

* References for papers published after 2023 are currently being built.