Advances in Economics, Management and Political Sciences
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Proceedings of the 2nd International Conference on Business and Policy Studies
Series Vol. 7 , 13 September 2023
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Does the Capital Structure Influence the Firm Performance of Real Estate Listed Companies Positively Between 2010 to 2020 in China
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Abstract
The financial structure of a firm is often regarded as the most essential factor influencing its operating performance. The real estate industry, as an important part of China's current national economy, is a typical capital-intensive industry with a large demand for capital. However, the industry's characteristics lead to a relatively slow return of capital in the real estate industry, putting pressure on the industry's financing capacity and capital structure. This paper divides the capital structure into two components: gearing ratio and debt structure, and takes China's real estate listed companies from 2010 to 2020 as a sample. The influence of capital structure on the performance of listed companies is examined empirically. It is found that there is a non-linear relationship between gearing and firm performance, i.e. an inverted U-shaped relationship. This paper still holds after robustness tests such as variable substitution, which are hoped to be useful for business performance, future government regulation and policy implementation.
Keywords
capital structure, firm performance, debt structure, real state
References
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Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 2nd International Conference on Business and Policy Studies
- ISBN (Print)
- 978-1-915371-41-6
- ISBN (Online)
- 978-1-915371-42-3
- Published Date
- 13 September 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/7/20230214
- Copyright
- 13 September 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited