The Relationship between Corporate Debt Ratio and Default Risk

• Main Authors: Wang, Wei-Han, 王暐涵
• Other Authors: 胡均立
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/98931547151085837534

碩士 === 國立交通大學 === 經營管理研究所 === 103 === This study focuses on the relationship between corporate debt ratio and default risk. We use the two-stage least square (2SLS) approach to examine the relationship between these two variables. All listed companies in Taiwan Stock Exchange except the financial enterprises from 2008 to 2013 are included as the data. Our major empirical results are as follows: Higher debt ratio will cause higher default risk. On the other hand, the raising default risk will increase the debt ratio. Besides, we use two equations estimated by our model to discuss how other exogenous variables influence main variables.