What determines the capital structure of real estate companies?

Morri, Giacomo; Cristanziani, Fabio

doi:10.1108/14635780910972288

Cited by 44 publications

(36 citation statements)

References 84 publications

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“…In their study, the profitability and operating risk were found negatively correlated with leverage ratio, while tangibility and growth rate was positive correlated. Morri and Cristanziani (2009) examined both REITs and non-REITs companies in European countries. Their findings confirmed the importance of the tax-exempt status for REITs in capital structure choices.…”

Section: Literature Of Property Firms' Financial Behaviourmentioning

confidence: 99%

An explanation of capital structure of China's listed property firms

Liang

Li²,

Song

2014

Property Management

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this paper is to investigate the determinants of the capital structure of listed property firms in China. Design/methodology/approach -The study is based on quantitative methods such as dynamic panel data models and a panel data set containing financial and accounting data for all listed property companies from 2006 to 2010 in China. Findings -The findings confirm that the state-own shares, the fixed asset values, the total size of assets and profitability have a positive and significant impact on the leverage ratio of listed property firms in China. The negative impact of the tax shields and the currency ratio, and significant impact of state-own shares on capital structure cannot be explained by existing capital structure theory but the unique property market regulation environment and market conditions in China.Research limitations/implications -The findings confirm the applicability of trade-off theory (except for the correlation between leverage and the tax shield) on property companies in China. They also highlight the importance of government policies and special market conditions in explaining the financing behaviour of property companies in transaction countries like China.Practical implications -Complimentary policies should be established along with property market restriction policies to offset their unequal negative effect on property companies with less state-owned shares. Furthermore, government should invest efforts to eliminate the discrimination credit treatment of banks against property companies with non-existent or few state-owned shares. Originality/value -The special financial behaviour of China's property firms and the unique financial and property market conditions highlight the necessity of researching the capital structure of listed property firms in China. However, most of the existing literature focuses on the company financial behaviour in developed countries, and very few studies have been done concerning property firms' financing behaviour in emerging economies such as China, and this research prospects to fill this blank.

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Section: Literature Of Property Firms' Financial Behaviourmentioning

confidence: 99%

An explanation of capital structure of China's listed property firms

Liang

Li²,

Song

2014

Property Management

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“…Morri andCristanziani (2009), ooi (1999), and Mallikarjunappa and Goveas (2007) show insignificant relationship between growth and leverage. However, empirical studies have mixed results of the growth and leverage, for example, Gwatidzo and Ramjee (2012), Ameer (2013) and Bayrakdaroglu et al (2013) find a positive relation between growth and leverage while abbad and zaluki (2012), Gurcharan (2010) and Antoniou et al (2008) show negative association between growth and leverage.…”

Section: Growthmentioning

confidence: 99%

The Determinants of Capital Structure: Evidence from Selected Listed Companies in Sri Lanka

Pratheepan¹,

Banda²

2016

IJEF

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This research examines the determinants of capital structure of selected listed companies in Sri Lanka. The capital structure of 55 companies listed in Colombo Stock Exchange (CSE) is empirically examined using the fixed effects model. Based on the findings of the panel data analysis during the period of 2003-2012, Profitability exhibits statistically significant of inverse relationship with leverage while firm size and growth shows statistically significant of positive relationship with leverage for selected listed companies in Sri Lanka. Non-debt tax shields and tangibility indicate insignificant impacts on leverage. The results of this empirical study shows that there is robust evidence to support the pecking order theory by manufacturing based companies on the capital structure determinant of profitability variable, and growth variable also strongly supports to the association of the pecking order theory. Though, trade-off theory also can not be rejected because of the correct estimate of the positive sign of size variable of manufacturing based companies. Thus, implication of pecking order theory is more appropriate in Sri Lankan perspective.

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“…Contextually, to calculate these parameters, other information must be inserted into the data regarding the financial leverage ratio of companies in the real estate development sector [79,80]. From this ratio it has been possible to obtain the leverage degree that transport it directly to the WACC formula; the degree of financial leverage is given by the expression: NAF = D/(E + D), therefore: E/(E + D) + NAF = 1.…”

Section: The Level Of Financial Leverage: Determination Of E and Dmentioning

confidence: 99%

Land Valuation Sustainable Model of Urban Planning Development: A Case Study in Badajoz, Spain

et al. 2018

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Abstract:The urban planning development process in urban territories has multiple consequences, not only in spatial structure but also in land valuation patterns. The economic value of land encompassed in municipal planning-which is associated with a certain urbanized use-increases as the planning processes evolve over these lands. For economic land valuation to comply with the required parameters of urban and territorial sustainable development, it is pivotal that in the determination of land value there are no expectations of difficult or impossible realizations, in order to eliminate any speculative element from the valuation. The land valuation model presented in the current study complies with this premise, proposing a sustainable land valuation model based on the evolution of urban planning development, achieving maximum value when it is fully urbanized. The main objective of the present work is to analyze how land value increases as municipal planning develops and to suggest a sustainable valuation model for land with urban use. Contextually, through a case study analysis, the development of municipal planning has been divided over time into four urban states: (i) land without detailed planning; (ii) land with detailed planning; (iii) land with re-parceling; and (iv) urbanized land. In this regard, the gradual evolution of land value which has reached different states over time has been determined, as has scenarios where the value has increased up to the value of urbanized land.

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What determines the capital structure of real estate companies?

Cited by 44 publications

References 84 publications

An explanation of capital structure of China's listed property firms

An explanation of capital structure of China's listed property firms

The Determinants of Capital Structure: Evidence from Selected Listed Companies in Sri Lanka

Land Valuation Sustainable Model of Urban Planning Development: A Case Study in Badajoz, Spain

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