Effect of Capital Structure (CS) on Financial Performance (FP) of Chinese Listed Real Estate Companies (CLRECs)

DOI

10.2991/aebmr.k.210601.062How to use a DOI?

Keywords

Capital Structure, Financial Performance, Chinese Listed Real Estate Companies, Debt Ratio

Abstract

This research tests the effect of capital structure (CS) on financial performance (FP) based on a sample of 24 CLRECs during 2015-2019. Statistical results show that short-term debt ratio (STDR), long-term debt ratio (LTDR) and total debt ratio (TDR) all have significantly negative effect on return on assets (ROA), return on equity (ROE) and on earnings per share (EPS). The research conclusions offer empirical evidence supporting the bankruptcy theory. As such, CLRECs shall optimize CS, changing the over high debt ratio, reducing the over dependence on bank loans, and extending channels and means of financing, so as to improve performance.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Linqing
AU  - Zhouyun
PY  - 2021
DA  - 2021/06/02
TI  - Effect of Capital Structure (CS) on Financial Performance (FP) of Chinese Listed Real Estate Companies (CLRECs)
BT  - Proceedings of the 2021 International Conference on Enterprise Management and Economic Development (ICEMED 2021)
PB  - Atlantis Press
SP  - 355
EP  - 358
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210601.062
DO  - 10.2991/aebmr.k.210601.062
ID  - 2021
ER  -