This paper discusses and analyzes the relationship between the financialleverage rate and rerum ratio and risk of holding companies and maintains that the former affects the latter.
We calculate financialleverage, LEV, as the ratio of total non-current liabilities to total assets.
我们计算出财务杠杆LEV,它是非流动负债总额与总资产的比值。
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It is also found that the ownership reward of the company mainly benefits from financialleverage. The reward rate of ownership decreased after the asset-liability ratio was improved in 2006.