Chapter
Aug 14, 2017
International Conference on Construction and Real Estate Management 2016

Research about the Impact of Debt Financing on Real Estate Listed Corporations’ Financial Performance

Publication: ICCREM 2016: BIM Application and Off-Site Construction

ABSTRACT

Debt financing is an important way of financing in a listed company. It affects the company’s capital structure directly and also has a great impact on the company’s financial performance. The real estate industry has a long development cycle and a huge amount of investment, which also determines the study about the impact of debt financing on its performance has a certain realistic significance. This paper views the real estate listed companies as the object of study and uses multiple linear regression model to analyze the relationship between debt financing and corporate performance. It shows that there is a negative correlation between corporate performance and asset-liability ratio. It also provides a lot of useful strategies for real estate listed corporation’s debt financing based on the analysis results.

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REFERENCES

Jackson, S.B., Keune, T.M. and Salzsieder, L. (2013). “Debt, equity, and capital investment.” Journal of Accounting & Economics, 56(2–3), 291–310.
Li, H. and Li, W.X. (2012). “An empirical study on the relationship between capital structure and operating performance of listing corporation in Hubei Province.” Statistics and Decision Making, (10), 169–171. (in Chinese).
Liu, J.P. and Yang, W.D. (2009). “Research on the relationship between financing structure and corporate performance of the real estate industry in the real estate industry.” Journal of East China University of Science and Technology: Social Science Edition, 24(1), 47–51. (in Chinese).
Margaritis, D. and Psillak, M. (2010). “Capital structure, equity ownership and firm performance.” Journal of Banking & Finance, 34(3), 621–632.
Shah, K. (1994). “The nature of information conveyed by pure capital structure changes.” Journal of Financial Economics, 36(1), 89–126.
Tian, S.H. and Liu, Y.N. (2014). “Research on equity financing preference of Chinese Enterprises: Based on the visual angle of reputation premium, market power and cash bonus.” Shanghai Economic Research, 2014(1), 50–62. (in Chinese).
Williamson, O.E. (1988). “Corporate finance and corporate governance.” Journal of Finance, 43(3), 567–591.

Information & Authors

Information

Published In

Go to ICCREM 2016
ICCREM 2016: BIM Application and Off-Site Construction
Pages: 978 - 984
Editors: Yaowu Wang, Ph.D., Professor, Harbin Institute of Technology, Mohamed Al-Hussein, Ph.D., Professor, University of Alberta, Geoffrey Q. P. Shen, Ph.D., Professor, The Hong Kong Polytechnic University, and Yimin Zhu, Ph.D., Professor, Louisiana State University
ISBN (Online): 978-0-7844-8027-4

History

Published online: Aug 14, 2017

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Postgraduate, School of Management, Harbin Institute of Technology, Harbin, China, 150000. E-mail: [email protected]
Professor, School of Management, Harbin Institute of Technology, Harbin, China, 150000. E-mail: [email protected]

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