Effect of Capital Structure (CS) on Financial Performance (FP) of Chinese Listed Real Estate Companies (CLRECs)
- 10.2991/aebmr.k.210601.062How to use a DOI?
- Capital Structure, Financial Performance, Chinese Listed Real Estate Companies, Debt Ratio
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.
- © 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/).
Cite this article
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 -