Impact of capital structure on financial performance of real estate Essay

Impact of capital structure on financial performance of real estate firms listed in Chinese stock exchange - Essay Example ortant to obtain a brief understanding of the theoretical aspects related to the capital structure and its role in the performance of the company, which assisted significantly in the formation of specific research objectives. The next phase, of the research emphasized gathering of necessary data, wherein secondary sources that includes utilising the official website i.e. ‘Shanghai Stock Exchange’ have been utilised to extract data. Subsequently, the related data gathered using the secondary sources were analysed with the assistance of a quantitative approach using the statistical tools i.e. correlation and regression. Finally, an in-depth analysis was conducted based on the collected data to ensure valid and justifiable conclusions based on the obtained findings (Bergh & Ketchen, 2009). Correspondingly, this chapter of the dissertation intends to provide an in-depth and comprehensive understanding of how this research study was carried out through the collection of reliable data and information to derive the ultimate objective of research. The objective of the research study was to determine the impact of organisations’ capital structure over the financial performance of the business. In this regard, the financial performance of the 20 listed real estate companies, in the Chinese stock exchange, was taken into the consideration. In general context, based on the objective of the research, a study can be carried out using positivism, realism, interpretivism, or pragmatism philosophical approaches. However, particularly in order to achieve previously mentioned research aims and objectives, interpretivism philosophy was utilised in this research study. The reason behind using interpretivism philosophy in this particular research study is owing to its advantages in the collection of needful data and information, maintaining high level of reliability, validity, and generalisability of the facts representing the financial position of the companies. Furthermore,