IDEAS home Printed from https://ideas.repec.org/a/urn/urnste/v6y2015i2p9-19.html
   My bibliography  Save this article

Law as part of compulsory education on universities

Author

Listed:
  • Pei Zhang

    (Economics and Management School, Wuhan University, Wuhan, China)

Abstract

Euro Crises triggered highly attention around the world. Many national governments strictly reduce risks about government debt. As an implicit debt of government, the debt of Local government financing platform rose rapidly in order to cope with financial crises. In this context, this paper studies the problem of a Chinese local government financing platform by using modified KMV model. By calculating risks and safety margin scales of outstanding debt, this paper puts forward an approach to measure debt risks of platform enterprises. It finds that when the leverage ratio of financing Platform Company in Guangxi province is under 20%, the probability of default is very small. When the leverage ratio is above, probability of default increases rapidly. When the leverage ratio is about 35%, probability of default approaches to 1. At last, solutions are provided to manage risk including financial innovations, cooperation and information disclosure.

Suggested Citation

  • Pei Zhang, 2015. "Law as part of compulsory education on universities," HOLISTICA Journal of Business and Public Administration, Association Holistic Research Academic (HoRA), vol. 6(2), pages 9-19, July-Dece.
    • Handle: RePEc:urn:urnste:v:6:y:2015:i:2:p:9-19
    as

    Download full text from publisher

    File URL: http://holisticajournal.ro/details?pid=89
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    government finance; government guarantee; financing platform; debt risk; KMV model;
    All these keywords.

    JEL classification:

    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:urn:urnste:v:6:y:2015:i:2:p:9-19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Claudiu Baicu (email available below). General contact details of provider: https://edirc.repec.org/data/fasnsro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.