The Empirical Study On The Relationship Between Financial Structure And Company Performance

In recent years, the boost of real estate industry has greatly stimulated the growth of domestic economy. Meanwhile, the State has laid its great emphasis on the regulation and supervision of the real estate development, such as the implementation of rigid regulation on land transfer and sale, and the moderate credit tightening of real estate enterprises, etc. Facing the change of the external environment, to maintain the company performance, our national enterprises are supposed to take the following questions into consideration: how to adhere to the connotative development road, to adjust financial policies, arrange financial patterns and optimize the financial structure.Based on the financial structure theory and the theory of company performance, the influence of financial structure on the listed real estate corporations is explored in this thesis. According to the definition of financial structure, this thesis studied the characteristics and current status of the real estate listed companies'financial structure from the perspective of capital structure and ownership structure, as well as the relative factors effecting corporation performance. The framework of this thesis is as following:First, this thesis defines the concepts of financial structure,capital structure,ownership structure and company performance. Second, in retrospect of the western capital structure theory, the author does an analysis of the theory that the financial structure has an influence on the company performance, pointing out that the capital structure mainly effects company performance through the"governance effect"and"leverage effect"while ownership structure mainly through internal and external"governance effect."In addition, the author also makes a review of the literature about financial structure, ownership structure and company performance both at home and abroad. Third, with the combination of related theories analyses and the current status of China's real estate industry, a brief introduction of Chinese real estate financing development and its current status is presented. The key focus is on the analysis of the characteristics of Chinese real estate listed companies, which shows that Chinese real estate listed companies have the problems of single-mode financial instrument, the low ratio of endogenous financing and so on. Then the relation model of financial structure and company performance is constructed with multiple linear regression and quadratic regression curve. Besides, the effect of various explanatory variables and the share reform on the relationship between financial structure and company performance is carefully discussed. Finally, on the basis of the above analyses, a conclusion is drawn that financial structure problems in Chinese real estate listed companies can be effectively solved by the dual realization of capital structure optimization and ownership structure optimization.