The Determinants of Credit Risk in Casino Industry:Evidence from Macau

摘要

After the liberalization of casino market in 2001,Macau government has allowed domestic and foreign casino investors to set up new casinos in domestic casino market.With rapidly increasing growth in casino industry over the past several years,Macau has become the largest casino city in the world since 2006.Using annual data of six casino companies in Macau over the period of 2008-2012,this study investigates that the macroeconomic and firm-specific determinants of credit risk of casino industry in Macau.The empirical results of this study evidence that current ratio,return on assets,and market shares of casino tables have negative correlation with credit risk,whereas growth rate of CPI is positively related to credit risk.