Impact of capital structure on financial performance of real estate Essay - 1

Impact of capital structure on pecuniary performance of real estate firms listed in Chinese - Essay Examplen considered as a prominent industrial pillar of the national economy of China as it has fully impacted the employment, apprehend productivity, savings and total investment. The industry has a huge multiplier and hence it has the potential of being an eventful economic stimulus. Through employment, many households can afford a considerable high quality of animateness and in addition, pay tax for the government programs. Saving and investment has realized a lot of wealthiness creation and increased per capita income (Marketline, 2014).The real estate industry is inbredly related to leasing and renting of residential and moneymaking(prenominal) properties. The paper is aimed at assessing the real estate companies that are listed on the Chinese ocellus exchange correspondingly, background knowledge research has effectively focused on real estate development in Asia-Pacific region. Market digest arouse that on average the Asia-Pacific real estate industry has witnessed harvest-home of 13 percent betwixt 2009 and 2013 while China alone witnessed growth as high as 16.8 percent. Moreover, the paper conducts a voyage that is intended to find out the relationship between the capital structure and financial performance of the listed companies.Guo and Huang (2010) monitored that the growth rate of Chinese economy has been moderately high and consequently, it has become an important choice of foreign air investors. Foreign capital has been a great source of Chinese economy and since real estate is an essential pillar of the national economy, large scale foreign investment flows therein. Guo and Huang (2010) observed that in most Asiatic economies, the stock market and real estate market are interdependent and integrated. Guo and Huang (2010) scrutinized the association between stock market and real estate market in China and recognized unidirectional r elationship thereof.Studies suggest that since 2003, China witnessed heavy capital inflow as a result of liberalisation and the inflow was excessively huge to be