A Normative Analysis on Liquidity Risk Management
The firms objective is to match the effective maturity of its liabilities across several financing cycles, rather than to lengthen the maturity of the current bonds outstanding. When a firm is unable to meet its debt, it may have to seek more expensive sources of funds or even liquidate its assets. This paper provides a normative study of minimizing such debt payment risk through the optimal dynamic choice of the maturity structure of debt. The conclusion is that short-term financing is helpful for a firm with good financial position to readjust its maturity structure more quickly in response to value swings of the assets.
normative analysis liquidity risk management
Duojiao Tan
Accounting School Hubei University of Economics Wuhan, China
国际会议
成都
英文
549-552
2010-07-09（万方平台首次上网日期，不代表论文的发表时间）