International Conference on Construction and Real Estate Management 2016
Empirical Analysis on the Financial Leverage and Value Creation Ability of the Real Estate Industry in China
Publication: ICCREM 2016: BIM Application and Off-Site Construction
ABSTRACT
This paper aims to study the influence of financial leverage on the value creation ability of real estate industry in China, making companies better improve and utilize financial leverage, and then promoting value creation ability. This paper classifies financial leverage into three categories: financial leverage from bank (FLB), financial leverage from payable (FLP), and financial leverage from other (FLO), using a pool sample composed of 115 Chinese real estate companies over the period 2010–2014, and taking the growth rate of rate of capital increment (GROCI) and the growth rate of market value added per share (GMVAPS) as measures for financial value creation ability and market value creation ability. The results show that FLP contributes the most to the value creation ability, less with FLO and the least with FLB. These findings fill the gaps in the study of financial leverage, which help push companies to change the financing channel so as to promote the value creation ability.
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ACKNOWLEDGMENTS
This paper was financially supported by the Natural Science Foundation in Heilongjiang Province, China (G2015010), the Philosophy and Social Science Research in Heilongjiang Province, China (15GLD01).
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Information & Authors
Information
Published In
ICCREM 2016: BIM Application and Off-Site Construction
Pages: 1107 - 1113
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
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© 2017 American Society of Civil Engineers.
History
Published online: Aug 14, 2017
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