Empirical Study On Influencing Factors Of Trade Credit Of China Real Estate Listed Firms

Trade credit is one of the most important short-term external financing channels in anyenterprises, which can effectively save the working capital for the enterprise, improve thefinancial performance and development ability of enterprises. With the increasingly fiercemarket competition and the gradually perfect system credit, after years of development, tradecredit will play more and more important role in the development of the enterprises in China, andbecome an important source of our enterprises’ daily financing. At the same tome, the study oftrade credit has become one of the hot issues in the academic community.The real estate industry is one of the mainstay industries of China’s economic development,which has a variety of financing channels. Commercial credit application of the real estateindustry has distinct industry characteristics. In recent years, with the national macro-control ofthe real estate industry, some financing problems appear in many real estate enterprises. Thedevelopment of commercial credit affects the healthy operation of the real estate industry and thesteady development of our national economy. In this background, study on the influencingfactors of trade credit of the real estate industry is becoming a focus of concern.This paper based on the analysis of the real estate industry’s commercial credit data in thepast four years, try to clear the internal and external factors of the listing Corporation how toinfluence the business credit, extend the commercial credit study in special economictransformation, and make up for the domestic study on influence factors of real estate listedfirms’ commercial credit in a certain extent. At the same time, this paper tries to provideconstructive ideas for the rational use of trade credit, and give the government some reasonableregulation for regulate and control the real estate industry.In this paper, at first, we introduced the background, significance, content and framework ofthe trade credit study. And then, we made a summery about the related commercial credit theoryand the Chinese and foreign literature. Using the research method of combining theory andpractice, we summarized and analyzed the development status of China’s listing Corporationbusiness credit. On this basis, this paper selected the real estate listed companies in Shanghai andShenzhen Stock market of China between2008and2011years as research sample, from twoangles of commercial credit supply side and demand side, using the regression analysis methodto make the empirical test of the impact factors of trade credit.The empirical results showed that, size, asset-liability ratio, short-term loan ratio, return ontotal assets and business scale are remarkable correlative with trade credit thatfirms provide, andthe state-owned shares, institutional investors, asset liability ratio, flow ratio, short-term borrowing rate, total rate of return on assets, profit margin and the existence of life areremarkable correlative with trade credit that firms use.Through the analysis of the results of empirical research, combined with the actual situationof trade credit of China real estate listed firms, starting from the perspective of the governmentand enterprises, this paper put forward some effective measures to encourage and guideenterprises to reasonably use commercial credit to financie. We hope to provide some practicalhelp for the establishment of China healthy credit environment and the development of the realestate industry sustained and stable.