The Empirical Study On The Relationship Between The Capital Structure And The Financial Performance Of The Listed Real Estate Corporations

China's economy has been increasing very fast in the past 10 years and is undertaking rapid urbanization. With such rapid economic growth and urbanization, Real Estate industry becomes one of the most important industries in China. As a capital-intensive industry, Real Estate industry can not go without the support from financial institutions. Both financial institutions and real estate enterprises need to have a mutual understanding to reduce the involved risk and to maximize the profit. Listed Real Estate corporations, characteristic of the field, offer a good chance to probe into the capital structure of Real Estate enterprises.Many economists devote themselves into these two domains. Ever since Modigliani and Miller made their MM paradigm, the modern-capital structure has come into being. Following their original thoughts,more and more economists have realized the perfect hypothesizes of MM paradigm are untenable in reality. In the late seventies, the new capital structure theory, which taking the asymmetric information theory as centre, began to replace the old capital structure theory and came into the academic field.In our country, these two theories has become the focus that the scholars pay close attention to. As a rising industry, the real estate industry developed very quickly in the past ten years. And how progresses this industry quick and healthy is become the most important thing. Therefore, the research of the relationship between the companies' capital structure and the financial performance becomes the focus of the theoretical research and practical research. This paper is trying to find out the relationship between the capital structure and the financial performance of the listed real estate corporations, though research on the financial data. And then this research gives some advices about how to get the best capital structure.