capital structure choices among Hong Kong property companies

Objective This paper investigates in the bully social corpse choices among Hong Kong post companies. 30 listed companies be selected from Hong Kong property sector. Based on the theories we begin examine from class, we argon going to find that, in Hong Kong property manufacturing, what are the factors that touch the choices of groovy letter structure, and to what degree they are related to capital structure choices. The theory of capital structure is explained first, the capital structure of thirty listed Hong Kong property companies give be investigated by dint of unbiased linear regression analysis of the relationship between the Debt-to-Equity ratios and the selected factors. about other issues with choosing the capital structure in the property industry will also be discussed. Lastly, conclusions and limitations will integrate whole the important considerations that are required when choosing capital structure for Hong Kong property companies. Introductio n to seat of government Structure gravid structure refers to the way that a company finances its capital, through the combination of equity and debt, and it is correspond by Debt-to-Equity ratio quantitatively. Capital structure was firstly initiated by Modigliani and Miller (1958) through their proposition.

It was suggested that, the appraise of a corporation base be represented by a pie with its size autonomous to how the debt and equity is allocated. However, in reality, capital structure can affect a firms cash flows for a routine of reasons, and some important factors are needed to be taken into consider ations when choosing capital structure for t! he company. digest of Capital Structure Choices among Hong Kong post Companies 1.Capital structure and Profitability harmonise to the theory of pecking-order, there are two rules. Rule 1 is that the firm prefers to use inbred financing and Rule 2 is that the firm prefers to issue full securities first. However, the concept of trade off model does not have those rules....If you want to get a full essay, order it on our website: BestEssayCheap.com

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