DEBT RATIO ANALYSIS OF TAIWAN??PROPERTY DEVELOPMENT FIRMS UNDER CONTRACTION

Authors

Chao-Hui Wu, Associate Professor, Department of Civil Engineering, Ching-Yun University, No. 229, Chien-Hsin Road, Jhongli City, Taoyuan County, Taiwan 320, R.OC.Follow
Ting-Ya Hsieh, Professor, Graduate Institute of Construction Management, National Central University, No. 300, Jhongda Road, Jhongli City, Taoyuan County, Taiwan 320, R.O.C.

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.

Recommended Citation

Wu, Chao-Hui and Hsieh, Ting-Ya (2006) "DEBT RATIO ANALYSIS OF TAIWAN??PROPERTY DEVELOPMENT FIRMS UNDER CONTRACTION," Journal of Marine Science and Technology: Vol. 14: Iss. 4, Article 6.
DOI: 10.51400/2709-6998.2085
Available at: https://jmstt.ntou.edu.tw/journal/vol14/iss4/6