The Relationship Between Debt Financing and Market Value of Company: Empirical Study of Listed Real Estate Company of China
نویسندگان
چکیده
This paper explains the relationship between the debt financing and market value from about 272 Chinese real estate companies, which are all from Shanghai Stock Exchange and Shenzhen Stock Exchange between 2002 and 2007.We conduct an empirical study, the empirical results show that our country’s real estate listing of corporate debt financing relatively large proportion of total assets, average by 55%. And generally improving the overall rate of debt financing can improve the company's market value. Further in-depth studying, we found that long-term borrowing and commercial credit financing have positive correlation with the company's market value, however, short-term borrowing and company's market value had a negative correlation.
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