Volume 2, Issue 1, May 2012, Pages 56 - 60
Evaluating of Loan Guarantees Between Parent and Subsidiary Based on Vulnerable Option
Li Li, Zongfang Zhou, Xiao Lei
Received 26 November 2011, Accepted 12 March 2012, Available Online 1 May 2012.
- https://doi.org/10.2991/jracr.2012.2.1.6How to use a DOI?
- Business group, Vulnerable option, Loan guarantees, Credit risk.
- Loan guarantees between parent and subsidiary is the main related transaction in business group, its correct estimation is the foundation of controlling group’s credit risk. Applying option theory, this paper researches the vulnerable option characters of loan guarantees, gives the valuation model under two different security methods, theoretically analyzes the influence of such critical factors as companies asset value and equity ratio to loan guarantees’ value and provides theoretical basis for the decision-making of loan guarantees.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - JOUR AU - Li Li AU - Zongfang Zhou AU - Xiao Lei PY - 2012 DA - 2012/05 TI - Evaluating of Loan Guarantees Between Parent and Subsidiary Based on Vulnerable Option JO - Journal of Risk Analysis and Crisis Response SP - 56 EP - 60 VL - 2 IS - 1 SN - 2210-8505 UR - https://doi.org/10.2991/jracr.2012.2.1.6 DO - https://doi.org/10.2991/jracr.2012.2.1.6 ID - Li2012 ER -