Abstract
This study analyzes the correlation between debt ratios and corporate performance of the property development firm during times of contraction in Taiwan. This study collects and examines financial data for the period 1992 to 2003 for 25 listed property development firms. A total of 16 financial ratios, collectively representing corporate performance, were statistically checked with three types of debt ratios. The comparison results reveal that profitability related ratios are inadequate representations of corporate performance. Especially, investors consider a vigorous dividends policy to indicate a crisis. Two positive directions for property development firms during a contraction include (1) product differentiation and innovation and (2) retrofitting tax structure and bankable assets to prepare for long-term financing.
| Original language | English |
|---|---|
| Pages (from-to) | 231-242 |
| Number of pages | 12 |
| Journal | Journal of Marine Science and Technology (Taiwan) |
| Volume | 14 |
| Issue number | 4 |
| State | Published - Dec 2006 |
Keywords
- Contraction cycle
- Debt ratios
- Principal component method
- Property developer