The Correlation Study On Capital Structure And Performance Of Real Estate Listed Companies

The research of the relationship between capital structure and the performance ofthe company is always the academic hot issue since1950’s. The scholars related athome and abroad did deep research on the subject of how the capital structureinfluence firm performance and the extent of impact. However, empirical analysiswhich is got on this issue has not drawn the same conclusion. The real estate industryis the pillar industry of national economy, in recent years, the proportion of the realestate investment as a percentage of gross domestic products (GDP) is increasing, andit plays a decisive role in the development of the national economy. But just theindustry which has a special status in the development of the national economy hasthe high rate of assets and liabilities and capital source channel is narrow, still verydependent on bank loans, so it is very important to research the relationship betweenthe capital structure and the performance of company.Firstly, this paper introduces the purpose and significance of the research, andreviews the relevant theoretical literature, focusing on the traditional western capitalstructure theory, the modern capital structure theory and the new theory of capitalstructure. Then, I carry on the thorough analysis about capital structure currentsituation of china’s real estate industry from the debt structure and stock structure twoaspects using the data of nearly5years. Finally I select45real estate companies assamples from the existing120listed real estate companies using stratified samplingmethods to make empirical research with the data ranging from the year of2006to2010using descriptive statistics, factor analysis, regression analysis and the othermethods related. In empirical study, the author calculate the comprehensiveperformance as the explanatory variables of the research using factor analysis;select the asset-liability ratio, the proportion of state-owned shares and otherindicators as dependent variables; select growth and the scale of the company as thecontrol variable. Then I will carry empirical regression using the data of nearly5years in accordance with the established regression model.The result shows that, the assets liabilities ratio and comprehensive performance of our country’s real estate listed companies is negatively correlated, the proportion ofthe first shareholder is positively related with the comprehensive performance, growthand integrated performance is positively related, the proportion of state-owned shareshas little effect on overall performance. Finally, I put forward the related proposal inthis paper based on the results of the empirical analysis combined with the actualsituation, with expect to improve performance and achieve the maximization ofcorporate value.