THE ROLE OF PROPERTY IN CORPORATE FINANCIAL STATEMENTS : SOME SINGAPORE EVIDENCE

Abstract

This research explores the importance of corporate real estate in corporate financial statements. The primary aim is to examine the role property plays in financial statements from the perspective of profitability and overall financial structure of corporations. Most non-property companies treat property merely as a factor of production with little judgement of how it is expensed or valued. As such, its role in the corporate financial statements has not been understood. Given that property is a sizeable asset in the balance sheet of some non-property companies, the concern is whether property can significantly affect the financial performance of the firm. Evidence seems to suggest that property asset intensity plays an important role in corporate financial management. More specifically, it can significantly affect the corporate financial structure and return performance of property intensity companies.