A Study on Similar Financial Model in Real Estate Sector

Yi-chun Li ()
Additional contact information
Yi-chun Li: CAS

A chapter in Proceedings of 20th International Conference on Industrial Engineering and Engineering Management, 2013, pp 329-336 from Springer

Abstract: Abstract In this paper, we subdivide the sample of real estate listed companies selected from the two stock exchanges in China from the year 2001–2012 into two categories: firms which adopted the similar financial model and firms which did not adopt. T-tests and nonparametric tests are used to explore the differences between the two categories in funds management, assets structure, liability structure, profitability, liquidity and growth rate. The results show that firms which adopted the similar financial model have faster assets turnover and higher Debt Ratio (DR), thus have higher growth rate and better profitability. The regression analysis results further show that Return on Invested Capital (ROIC) of similar-financial-model firms are significantly correlated with Net Profit Margin (NPM) positively and with the Ratio of Net Commercial Credit to Sales Revenue (NCCSR), Cash Conversion Cycle (CCC), Financial Expense Ratio (FER) and the Ratio of Interest–bearing Liabilities to Debt (IBDR) negatively. Moreover, negative relationship between ROIC and GROUP demonstrates that firms which adopted similar financial model have better profitability than firms which did not adopt.

Keywords: Liquidity risk; Profitability; Real estate sector; Similar financial model (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-642-40072-8_32

Ordering information: This item can be ordered from
http://www.springer.com/9783642400728

DOI: 10.1007/978-3-642-40072-8_32

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().