Relationship Listed Real Estate Company's Capital Structure And Corporate Performance

The reform of housing system in1998makes real estate industry enter themarket faster. And after30years of rapid development, the real estate industry hasgradually become the pillar industry of national economy. Further, real estate industrypromotes the development of more than40industries, and creates a lot of economicgrowth, Our country pays more attention to the development of real estate industry.The real estate industry is a capital-intensive industry, scientific and reasonablefinancing arrangement contributes to construct a reasonable capital structure for thereal estate company. Since1998, Since1998, the real estate industry has experienceddifferent stages. The country issued a series of macroeconomic policies to guide itsdevelopment, So the financing channels of real estate and company performance areaffected. The research of the relationship between the real estate industry CapitalStructure and Corporate Performance provide an effective basis for the optimizationof the capital structure, and beneficial to improve corporate performance in thechanging market environment. It also conducive to the development of the real estatedevelopment and the health of the national economy in a long-term.Firstly, this paper introduces capital structure theory and company value theory.And it separately summarizes relevant researches written by scholars at home andabroad. Then the capital structure and financing way of real estate industry in Chinaare analyzed. Finally, combined with the feature of real estate industry, this paper willselect appropriate ownership structure and debt structure index, and combine thefinancial performance and market value and so on. It will select Return on Equity(ROE), Return on Assets (ROA), Tobin’s Q Ratio and Economic Value Added (EVA)as the performance evaluation index. And the panel data from2001to2011of49listed real estate companies which had realized the reform of non-tradable shares willbe as samples. In this paper, the multiple linear regression method will be used toanalyze the capital structure and company performance relationship of listed realestate companies, Including the overall regression and Stage regression. The empirical results show that: the asset-liability ratio and corporate performance is positivelycorrelated. Current liabilities ratio, long-term capital debt ratio, interest-bearing debtratio and corporate performance is negatively correlated. Proportion of institutionalownership, ownership concentration and corporate performance is positivelycorrelated. The split share structure reform had changed the ownership structure andhad an impact on corporate performance. After split share structure reform, the extentand direction of the capital structure affect the company’s performance has change.The ratio of shares outstanding greater impact on corporate performance.According to the empirical results, combined with the actual situation, thispaper will find out the key factors. And some effective suggestions will be putforward in order to promote the optimization of real estate industry capital structure,improve company performance and promote the rational allocation of socialresources.