Nobody downloaded yet

Impact of Capital Structure on Financial Performance of Real Estate Firms Listed In Chinese Stock Exchange - Essay Example

Comments (0) Cite this document
Summary
The real industry in China is considered an important part of the countries national economy and represents about 78.8% of the industry revenue in Asia-pacific region. The operations the firms within this industry are, therefore, immensely influential on the activities of banks…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.5% of users find it useful
Impact of Capital Structure on Financial Performance of Real Estate Firms Listed In Chinese Stock Exchange
Read TextPreview

Extract of sample
"Impact of Capital Structure on Financial Performance of Real Estate Firms Listed In Chinese Stock Exchange"

Download file to see previous pages The study analyses the listed firms based on the following objectives
The study is a descriptive research design that explores the capital structure of companies listed in the Chinese stock exchange in seeking to describe their impact on the financial performance of the same companies. Information about 20 companies was collected from the official website of the Shanghai Stock Exchange (SSE). The companies were selected in accordance to the composite index of the SSE, to ensure the findings can be generalised to other firms. Quantitative data analysis methods have been utilised in analysing the data gathered form the research with regression analysis being utilised to enhance the quality of the research findings. .
Different financial ratios of companies have been calculated and an industry average determined. The ownership of the listed firms is mainly by the government and legal institutions who own 28% and 24% respectively. The total debt and long term debt of the listed companies is 50.49% and 10.15% respectively. The equity over fixed asset ratio for the companies is at 92.77%. There has been a significant drop in the return on assets value which is currently at 9.74%. Chinese firms have an average liability of about 45% while the average liability of the G-7 countries in 54%.
Most of the Chinese companies listed on the SSE utilise a short term financing options and this has been the man characteristic of their capital structure. The capital structure adopted by these firms has the greatest impact on their performance. The companies listed in the SSE have been posting high profits and have financial debts which are lower than the average industry level. These firms are mainly financed through equity capital which is not a debt. Low debts have had a significant effect in resulting to the high profits since there is a reduced level of interests paid, ensuring the ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Impact of Capital Structure on Financial Performance of Real Estate Essay - 1”, n.d.)
Impact of Capital Structure on Financial Performance of Real Estate Essay - 1. Retrieved from https://studentshare.org/finance-accounting/1684002-impact-of-capital-structure-on-financial-performance-of-real-estate-firms-listed-in-chinese-stock-exchange
(Impact of Capital Structure on Financial Performance of Real Estate Essay - 1)
Impact of Capital Structure on Financial Performance of Real Estate Essay - 1. https://studentshare.org/finance-accounting/1684002-impact-of-capital-structure-on-financial-performance-of-real-estate-firms-listed-in-chinese-stock-exchange.
“Impact of Capital Structure on Financial Performance of Real Estate Essay - 1”, n.d. https://studentshare.org/finance-accounting/1684002-impact-of-capital-structure-on-financial-performance-of-real-estate-firms-listed-in-chinese-stock-exchange.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
The Impact of Capital Structure on the Firms Performance
...The Impact of Capital Structure on the Firm’s Performance . Retrieved March 10, 2011, from Social Science Research Network: http://ssrn.com/abstract=396020 or doi:10.2139/ssrn.396020 This is the annotation of the above source, which is designed according to APA format and what this source says about Capital Structure Decisions is further discussed. The authors of this paper are proffessors Murrary Frank and Vidnan Goyal. Frank is one of the faculty of commerce in the university of british columbia, Canada. While, Goyal is in the department of finance in Hong Kong University of Science and Technology. They...
3 Pages(750 words)Essay
Capital Structure Evaluation of Sample Firms
...available from the sample firms chosen above. Ju et al. (2004) maintain that "trade-off" model performs reasonably well in the real world in predicting capital structures of firms. Against widely divergent views, the researchers deduce that the optimum debt to total capital ratio is 15.29% using a dynamic capital structure model. In fact, they maintain that within an optimal gearing ratio range of 11.0% to 20.3%, the change in a typical firm's value is only 0.5%. It is argued that a deviation of 10 percentage points from the "target" capital...
8 Pages(2000 words)Essay
Real Estate
...economic diversification to portray new financial as well as banking firms. It has become extremely wealthy after gaining foreign direct investment funding in the 1970s. The country has a rather high Human Development Index when compared to other Asian countries the country has risen 8 ranks on the Human Development Index. UAE Economic Outlook: UAE's nominal GDP grew at a great speed by 25.6% in 2005 to achieve AED485.5bn (US$132.3bn) (, United Arab Emirates Central Bank) this has been accepted by the central bank. Real GDP in 2005 grew quite rapidly by 8.2% to AED357.6bn on the back of extremely strong economic activity, and the prices of oil also grew at a fast pace resulting in big...
8 Pages(2000 words)Essay
Real estate and capital structure decisions- Lease versus Buy Analysis
...not be overwhelmed by this and immediately decide to buy an office space. Buying one, as practical as the result may seem, is far more complicated than renting one. These factors are the ones that are most important, other issues still need to be considered such as a thorough study of the market and economy for these play a vital role on asset depreciation or appreciation. 3. How will the purchase decision affect the financial position of STL? The purchase would reduce the firm’s working capital from HK$3.638 to HK$1.058, but STL should not be instantly put-off by this. A space purchase is not a liability; it is a venture that the company would speculate, a decrease in the...
8 Pages(2000 words)Essay
Real estate
...Ways That Real Property Is Transferred and the Procedures for Doing So Real e refers to land, buildings, houses andany other developments that may be connected to real property (Abts, 2002). Real estate is also known as real property, immovable property or realty. Legal ownership of real property rests with the owner of the legal documents of ownership such as the title deeds. Transferring property from one person to the other involves transferring the documents of ownership to the new owner (Abts, 2002). There are several rights of ownership that are recognized by law as far as real...
2 Pages(500 words)Essay
Impact of capital structure on financial performance of real estate listed on Chinese stock exchange
...Capital Structure Impacts on Financial Performance of Real E Listed On Chinese Stock Exchange Adrienn, H. Profitability And Sources Of General Manufacturers In 2009-2011, Annals Of The University Of Oradea, Economic Science Series, 22, 2, pp. 382-389, Business Source Complete, EBSCOhost, viewed 23 February 2015 According to Adrienn, 2013, capital structures of real estate corporations have direct impacts ion the finances and other determiners operational efficiency. Notable areas that depend on capital structure include profitability, how the firms compete in the market and management efficiency. Ease of acquisition of properties by the real estate firms is a function of the capital structure the firms incorporate. There should... their...
4 Pages(1000 words)Literature review
Impact of capital structure on financial performance of real estate firms listed in Chinese stock exchange
...Impact of capital structure on financial performance of real e firms listed in Chinese stock exchange Chinese Listed Real Estate Firms Over the past years, state owned enterprises dominated the Chinese industrial sector until the late 1980s when the government intervened and conducted an overhaul of the system. The government decided to take this bold step in order to end the black market trading that existed among the State owned enterprises. SOEs sold...
14 Pages(3500 words)Literature review
Impact of capital structure on financial performance of real estate firms listed in Chinese stock exchange
...Impact of Capital Structure on Financial Performance of Real E Firms Listed In Chinese Stock Exchange Table of Contents Research Methodology 3 Research Design 3 Research Philosophies 4 Research Approach 5 Data Collection Method 6 Data Analysis 7 Limitation 8 References 9 Research Methodology Research Design Success of any research study is heavily dependent and can only be achieved through the selection of proper techniques and methods during the collection of necessary data. Besides, the desired aim and objective of the research relate with the...
5 Pages(1250 words)Essay
Impact of Capital Structure on Financial Performance of Real Estate Firms Listed In Chinese Stock Exchange
...Impact of Capital Structure on Financial Performance of Real E Firms Listed In Chinese Stock Exchange Table of Contents Conclusion Recommendations 3 References 4 Conclusion This study has used twenty real estate firms to determine the impact of capital structure on their financial performance. The twenty firms selected for this study were listed companies in the Shanghai...
3 Pages(750 words)Essay
Impact of capital structure on financial performance of real estate firms listed in Chinese
... of capital structure in the financial performance, as the study taken into concern only involve 20 real estate firms listed in the Chinese stock exchanges. In addition, systematic as well as the predetermined timeline for conducting the entire study also limits the scope of this research study. Reference list Guo, F. and Huang, Y. S., 2010. Does “hot money” drive Chinas real estate and stock markets?. International Review of Economics & Finance, 19(3), pp. 452-466. Hui, X. and Chan, S. 2014. Monitoring Economic Growth in China. Guangzhou. Pp. 541 Kumar, S. and Phrommathed, P., 2005. Research methodology. New York: Springer. Marketline, 2014. Asia-Pacific - Real Estate. [pdf] Marketline. Available at: Impact of...
4 Pages(1000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic Impact of Capital Structure on Financial Performance of Real Estate Firms Listed In Chinese Stock Exchange for FREE!
Contact Us