THE ANALYSIS OF FINANCIAL PERFORMANCE OF REAL ESTATE COMPANIES IN CHINA AND INDONESIA

Abstract

The real estate industry has always been the focus of attention. With the rapid economic growth in recent years, people's desire to buy houses has become more and more intense, and the real estate industry has developed rapidly as a result. In order to deeply understand the financial situation of real estate companies, this study starts from the return on assets. By studying the impact of financial factors on the return on assets, we can analyze the impact and fluctuations of these financial factors on real estate companies. The purpose of this study is to identify the factors that affect the financial performance of the real estate industry in China and Indonesia. This study used secondary data of 6 Chinese and Indonesian real estate companies from 2011 to 2017 for quantitative research. Through previous research results, the researchers found that most of the researchers started from external factors such as market or policy, and rarely studied the financial factors inside the real estate. This paper attempts to discuss the financial performance of the real estate industry through the internal financial ratio of the real estate industry. The results of the empirical analysis: net profit has positive influence toward return of assets, total assets has negative influence toward return of assets, share price has negative influence toward return of assets, total employee has positive influence toward return of assets, net cash from operating activities has positive influence toward return of assets.