Journal of Finance and Economics
ISSN (Print): 2328-7284 ISSN (Online): 2328-7276 Website: http://www.sciepub.com/journal/jfe Editor-in-chief: Suman Banerjee
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Journal of Finance and Economics. 2015, 3(4), 72-76
DOI: 10.12691/jfe-3-4-3
Open AccessArticle

The Relationship between Capital Structure and Financial Performance of China’s Real Estate Listed Companies

Yazhu Feng1, and Yanfei Guo1

1School of Economics and Management, Shanxi University, Taiyuan, China

Pub. Date: September 11, 2015

Cite this paper:
Yazhu Feng and Yanfei Guo. The Relationship between Capital Structure and Financial Performance of China’s Real Estate Listed Companies. Journal of Finance and Economics. 2015; 3(4):72-76. doi: 10.12691/jfe-3-4-3

Abstract

After experiencing a roller coaster era of price rocketing and plumping, the development of China’s real estate industry will tend to be stable under the government’s macroeconomic control, which needs more effective financial management methods. This paper applies factor analysis to analyze the relationship between capital structure and financial performance of real estate listed companies in Shanghai Stock Exchange from 2010 to 2012, which concludes that the capital structure of real estate listed companies is negatively related to its financial performance, and provides related suggestions on optimization of capital structure.

Keywords:
real estate listed companies capital structure financial performance factor analysis

Creative CommonsThis work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

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