Nonlinear Relationship between Debt Financing and Business Performance in Real Estate Companies with Different Growing Abilities
- 10.2991/emle-15.2015.25How to use a DOI?
- panel threshold model; debt financing; business performance; growing abilities
Demand for funds is high for listed real estate companies. The degree of debt financing has a great impact on their business performance. This paper examines the relationship between debt financing and business performance under different growing abilities by building a panel threshold regression model for 107 listed real estate companies in China. It is shown that a negative declining effect exists between the rate of debt and business performance. Also, there is a triple threshold effect for companies with different growing abilities. The negative influence decreases with the growing abilities of business. As a result, listed real estate companies should adopt appropriate debt financing scale based on their development levels in order to maximize the benefits.
- © 2016, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Hui Wang AU - Hong Xu PY - 2015/11 DA - 2015/11 TI - Nonlinear Relationship between Debt Financing and Business Performance in Real Estate Companies with Different Growing Abilities BT - Proceedings of the 2015 International Conference on Economics, Management, Law and Education PB - Atlantis Press SP - 104 EP - 109 SN - 2352-5398 UR - https://doi.org/10.2991/emle-15.2015.25 DO - 10.2991/emle-15.2015.25 ID - Wang2015/11 ER -