The Exploit Research Of Relationships Between Capital Structure And Operating Performance Of China’s Real Estate Companies:from The Business Management View

As one of the core problems about corporation governance, capital structure is always the studying focus in both theoretical and practical fields. The corporations’ capital structure dominants the financial style, investment channels and capital operating of corporations. Corporations’management performance and management achievements are directly decided by corporations’capital structures. Based on different countries’current situations, both domestic and external scholars,using the data of different industries and different periods, carried our lots of studying on the corporations’ capital and structure, however they had not had an unanimous conclusion.Since China abolished the housing assignment policy and started the market-orientated reform of real estate, China’s real estate industry has experienced rapid development. Not only is the development of real estate industry related residents’housing security, but also related the development of steel, cement and architecture industries, which is related the local finance revenue. So real estate’s stable and healthy development is very important to the economic sustainable development and the building of harmony society. In recent years, Central government has made regulating policies to control the loan risk of real estate and keep financial stability, which will be bound to affect the capital structure and operating performance of real estate.Based on this background, this dissertation researched the relationship between companies’capital structure and operating revenue. Considering China’s special institutional background, this dissertation researched the effect of companies’ asset-liability ratio on operating performance from the perspectives of equity and stock right stimulating of senior executives and directors. Firstly, this dissertation introduced the history and industry statue of the real estate, and the condition of listed real estates. And this dissertation also preliminarily analyzed the indicator of capital structure, such as asset-liability ration, and so on. Secondly, this dissertation arranged some theories related capital structure to provide the theoretical basis for next theory analyses and combined China’s institutional background to propose research hypotheses through reviewing existed domestic and external researches on capital structure and operating performance. Using the data of listed real estate companies in Shanghai&Shenzhen A-Share Stock Market from2004to2012, this dissertation empirically researched the previous research hypotheses. Finally, this dissertation analyzed the congress results and provided the suggestion based on research results, and pointed out the flaws of this dissertation and follow-up researches.The research results of this dissertation showed that there is a positive relationship between asset-liability ration and companies’operating performance in China’s real estate companies and the main reason of this phenomenon is that the credit funds of China’s real estate companies are mainly from banks and under the high pace of economic development, credit funds can enhance the companies’ operating performance and also lead to the high asset-liability ration. So the asset-liability ration can improve companies’operating performance. Through deeply researching, we found both the nature of companies’equity and equity right stimulating of senior executives and directors have an significant effect on the relationship between asset-liability ration and operating performance, which is mainly because there are large differences of banks’monitoring effects on company with different nature of equity, and the equity right stimulating of senior executives and directors can affect company governance institutions, such as Principal-agency, Conflicts, and so on, and also affect the relationship between the asset-liability ration and operating performance.This research not only deepens the understanding of the current consideration of China’s real estate companies, but also enriches the theoretical researches on capital structure, which has strong theoretical and practical significance.