An Analysis of Profitability in Real Estate Industry

摘要

Under the control of stern macro-economic policy on real estate, domestic housing prices still keep high, which leads to ceaseless public questioning. In recent years, some experts claimed that the real estate companies had bidden farewell to the exorbitant benefit era. The empirical study in this paper showed that there was a large profit manipulation space in real estate industry, and the alleged lower profit margin was just to deceive the public. Using regression analysis method, taking the data of Shanghai A-share Market listed real estate enterprises in 2008 to 2010 as research samples, this paper compared the financial indexes such as management expense ratio and return on equity in vertical and horizontal ways, and revealed the truth of real estate enterprises’ exorbitant profits.