Enterprise Asset Pricing Models

The financial markets have developed rapidly with a growing number of financial prod-ucts and obvious demand for risk diversification and hedging over the past years. And there is also an increasing demand for measures to capture the various aspects of price movements and try to forecast the price of the financial assets. The asset pricing theory of enterpris-es’bonds has been a hot topic for several years in the field of financial mathematics. The traditional asset pricing model may not be sufficiently accurate sometimes so there are always two alternative ways. The first one are reduced-form models, which mainly concentrating on the purely mathematical expression without taking the inner economic meaning of the financial assets into consideration. The second one are structural models which may use more information of the enterprise and can be more helpful when people try to understand the price movements and price in the future.