Chapter
Dec 9, 2021

The Correlation between Capital Structure and Performance of Listed Real Estate Companies

Publication: ICCREM 2021

ABSTRACT

The real estate industry is important in the development of China’s national economy, which has strong industry relevance. At present, the main source of funds in the real estate industry is bank loans, and the higher asset-liability ratio makes it to have higher operational risk. Therefore, it is necessary to study the correlation between capital structure and performance. According to the four-year data of 2016–2019, this paper uses factor analysis to calculate comprehensive performance as an indicator of performance. Starting from the debt structure and ownership structure, it sets the asset-liability ratio, the proportion of state-owned shares, and the ownership concentration as independent variables. At the same time, it introduces two control variables of asset scale and growth to establish a regression model. The conclusion is that the asset-liability ratio is negatively correlated with performance, whereas the scale is the opposite. It has certain reference significance for the management and optimization of the capital structure of listed companies in the real estate industry.

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REFERENCES

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Go to ICCREM 2021
ICCREM 2021
Pages: 796 - 802

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Published online: Dec 9, 2021

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Jiawen Ding [email protected]
1Undergraduate, Dept. of Economics and Management, Harbin Institute of Technology, Harbin, China. Email: [email protected]
Haoming Wang [email protected]
2Undergraduate, Dept. of Civil Engineering, Harbin Institute of Technology, Harbin, China. Email: [email protected]
3Professor, Dept. of Economics and Management, Harbin Institute of Technology, Harbin, China. Email: [email protected]

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