The determinants of capital structure: Empirical evidence from Chinese real estate and construction listed firms in 2016

Abstract Purpose – The purpose of this paper is to investigate the determinants of the capital structures of the Chinese listed real estate and construction firms. Design/methodology – The paper chooses the cross-sectional data from Chinese listed property and construction companies in 2016 to car...

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Main Author: ZHANG, Yuanjing
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2017
Online Access:https://eprints.nottingham.ac.uk/46196/
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author ZHANG, Yuanjing
author_facet ZHANG, Yuanjing
author_sort ZHANG, Yuanjing
building Nottingham Research Data Repository
collection Online Access
description Abstract Purpose – The purpose of this paper is to investigate the determinants of the capital structures of the Chinese listed real estate and construction firms. Design/methodology – The paper chooses the cross-sectional data from Chinese listed property and construction companies in 2016 to carry out the multiple regression. Findings – The findings confirm that the firms’ total debt ratio is significantly and positively related to the profitability (ROA), firm size (Age and LnAt), and NDTS, while the long-term debt ratio of the listed firms in property and construction sectors statistically increases with the firm size (Age and LnAt) and decreases with profitability (ROA). Both leverage ratios are measured by the book value. Besides, the result shows an insignificant positive relationship between firm tangibility and two leverage ratios and a negative correlation between firm NDTS and the long-term debt ratio. As for the factor of growth opportunities, there is no significantly related to the total debt ratio and the long-term debt ratio. Further, there is no statistical difference in capital structure in real estate and construction firms. Research limitation –The limitation of this paper is the scale of sample selection and the empirical method employed. Value – This paper selects the latest and sufficient cross-sectional data from real estate and construction industries to provide the empirical evidence on the capital structure determinants.
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spelling nottingham-461962018-04-17T15:10:02Z https://eprints.nottingham.ac.uk/46196/ The determinants of capital structure: Empirical evidence from Chinese real estate and construction listed firms in 2016 ZHANG, Yuanjing Abstract Purpose – The purpose of this paper is to investigate the determinants of the capital structures of the Chinese listed real estate and construction firms. Design/methodology – The paper chooses the cross-sectional data from Chinese listed property and construction companies in 2016 to carry out the multiple regression. Findings – The findings confirm that the firms’ total debt ratio is significantly and positively related to the profitability (ROA), firm size (Age and LnAt), and NDTS, while the long-term debt ratio of the listed firms in property and construction sectors statistically increases with the firm size (Age and LnAt) and decreases with profitability (ROA). Both leverage ratios are measured by the book value. Besides, the result shows an insignificant positive relationship between firm tangibility and two leverage ratios and a negative correlation between firm NDTS and the long-term debt ratio. As for the factor of growth opportunities, there is no significantly related to the total debt ratio and the long-term debt ratio. Further, there is no statistical difference in capital structure in real estate and construction firms. Research limitation –The limitation of this paper is the scale of sample selection and the empirical method employed. Value – This paper selects the latest and sufficient cross-sectional data from real estate and construction industries to provide the empirical evidence on the capital structure determinants. 2017 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/46196/1/4270520_DT_Yuanjing%20ZHANG.pdf ZHANG, Yuanjing (2017) The determinants of capital structure: Empirical evidence from Chinese real estate and construction listed firms in 2016. [Dissertation (University of Nottingham only)]
spellingShingle ZHANG, Yuanjing
The determinants of capital structure: Empirical evidence from Chinese real estate and construction listed firms in 2016
title The determinants of capital structure: Empirical evidence from Chinese real estate and construction listed firms in 2016
title_full The determinants of capital structure: Empirical evidence from Chinese real estate and construction listed firms in 2016
title_fullStr The determinants of capital structure: Empirical evidence from Chinese real estate and construction listed firms in 2016
title_full_unstemmed The determinants of capital structure: Empirical evidence from Chinese real estate and construction listed firms in 2016
title_short The determinants of capital structure: Empirical evidence from Chinese real estate and construction listed firms in 2016
title_sort determinants of capital structure: empirical evidence from chinese real estate and construction listed firms in 2016
url https://eprints.nottingham.ac.uk/46196/