Empirical Study On The Relationship Between Financing Structure And Corporate Performance Of The Real Estate Listed Companies

Since the thirty years after the reform and opening, the real estate industry is developing rapidly and has made a great progress. Also, it has increasingly displayed its infrastructural, foreseeable and pillar role in national economy. However, the study on the financing structure of real estate fell behind other industry relative to the flourishing real estate industry in our country. Especially since 2006, the real estate price continues to rise in our country which leads to the significantly rising of the housing sales price in cities. Therefore, facing to the changing market environment, the investigation on the financial structure and performance of listed companies before and after 2006 is not only helpful to enhance the operating performance of real estate enterprises and promote development of real estate industry in China, moreover also has the vital significance to the entire national economy health stable development.This paper studies the relationship on capital structure and financing performance of listed real estate companies in China using the least square method. The result could be summarized as follows after comparing the different influences of financing structure to corporate performance of the real estate listed companies before and after 2006:the leverage of current assets shows a significantly negative correlation relate to ROE from 2001 to 2006; since 2006, the leverage of current assets was significantly correlated to ROE; the assets liabilities ratio and firm size are negatively related to Tobin's Q and the ratio of state shares and circulating shares is related to Tobin's Q before 2006; after that, the ratio of state shares and circulating shares is related to Tobin's Q too, and the assets liabilities ratio plays a significantly negative relation to Tobin's Q. However, the coefficient of assets liability ratio has a obviously improvement after 2006.