Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/234424
Title: CAPITAL STRUCTURE OF REAL ESTATE COMPANIES : AN EMPIRICAL STUDY
Authors: NGUYEN THI KIM QUY
Issue Date: 2006
Citation: NGUYEN THI KIM QUY (2006). CAPITAL STRUCTURE OF REAL ESTATE COMPANIES : AN EMPIRICAL STUDY. ScholarBank@NUS Repository.
Abstract: This study attempts to examine the capital structure determinants of 36 listed property companies in Hong Kong and Singapore for the period 2000 to 2004. It aims to provide a comparative analysis of the key financial ratios of Singapore and Hong Kong property companies and to investigate how the debt-equity structure of the companies is influenced by the various firm-specific attributes and market conditions. Over the study period, there are statistically significant differences between the mean values for all the four key financial ratios of property companies in Singapore and Hong Kong. The high debt ratio implies that property companies in general, have high financial risk. The higher debt ratio of Singapore property companies indicates that during this period, Singapore property companies had higher financial risk than Hong Kong property companies. This study also finds out that asset structure, business orientation, and the level of involvement in property development are significant determinants of the corporate financial structure. Corporate performance and growth opportunities are also important attributes that affect the debt -equity choice of property companies. In addition, the empirical evidence also shows that corporate property managers take into consideration the prevailing market sentiments, the company size and the company's market-to-book ratio when making the decisions on the capital structure. Systematic risk, however, does not appear to have any significant effect on the capital structure decisions of property companies.
URI: https://scholarbank.nus.edu.sg/handle/10635/234424
Appears in Collections:Bachelor's Theses

Show full item record
Files in This Item:
File Description SizeFormatAccess SettingsVersion 
CaNtkq.pdf23.25 MBAdobe PDF

RESTRICTED

NoneLog In

Google ScholarTM

Check


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.