The Impact of Financial Leverage on Corporate Profitability : An Empirical Analysis Based on Real Estate Listed Companies on Shenzhen Main Board

Shengrui Pang

doi:10.47297/wspdecWSP2515-797315.20250906

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The Impact of Financial Leverage on Corporate Profitability : An Empirical Analysis Based on Real Estate Listed Companies on Shenzhen Main Board

Volume 9, Issue 6

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The Impact of Financial Leverage on Corporate Profitability : An Empirical Analysis Based on Real Estate Listed Companies on Shenzhen Main Board
The Impact of Financial Leverage on Corporate Profitability : An Empirical Analysis Based on Real Estate Listed Companies on Shenzhen Main Board
Zhejiang University of Finance and Economics Dongfang College, Hangzhou, Zhejiang, 314408, China
Vol. 9, Issue 6, Pages: 76-81(2025)
Published：30 June 2025
DOI：10.47297/wspdecWSP2515-797315.20250906
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Pang Shengrui.The Impact of Financial Leverage on Corporate Profitability : An Empirical Analysis Based on Real Estate Listed Companies on Shenzhen Main Board[J].Development Economics of China,2025,09(06):76-81.
DOI：

Pang Shengrui.The Impact of Financial Leverage on Corporate Profitability : An Empirical Analysis Based on Real Estate Listed Companies on Shenzhen Main Board[J].Development Economics of China,2025,09(06):76-81. DOI： 10.47297/wspdecWSP2515-797315.20250906.

摘要

Abstract

This study employs panel data from Shenzhen Main Board real estate listed companies spanning 2021-2024 to empirically analyze the impact of financial leverage on profitability. Using the logarithm of return on assets (lnROA) as the dependent variable and the logarithm of leverage (lnLeverage) as the core independent variable

we incorporated firm size (Size) and capital intensity (Capital Intensity) as control variables to construct a multiple linear regression model. The analysis conducted using SPSS reveals a significant positive correlation between financial leverage and profitability

indicating that increased leverage levels paradoxically enhance earnings performance within this sample. Notably

neither firm size nor capital intensity demonstrated significant explanatory power for profitability

suggesting their explanatory significance remains limited at the current stage of analysis.

关键词

Keywords

references

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