An Empirical Study On The Relationship Between Financing Structure And Corporate Performance Of Real Estate Listed Companies In China

Listed real estate companies has become an important source of China’s centraland local government revenue, has become an indispensable factor to promoteChina’s economic growth. Listed real estate companies operating status results willdirectly affect the stability and prosperity of the market economy. Market of the realestate market because of the industry’s peculiarities, needs the support of a lot ofmoney, so, whether financing in a reasonable manner become a key factor affectingtheir development, In other words, the listed real estate companies how it should bereasonable arrangements for its financing structure major problem. Differentfinancing structure will affect the financing cost of capital, the size of the firm’sfinancial risk and debt interest tax deductible to affect the company’s operatingperformance. Especially in the financial crisis, the market economy and recession allthe more important to study the relationship between the financing structures of itsoperating performance of listed real estate companies in China.Since the MM theory, domestic and foreign scholars from the differentperspectives of different financing structure of their company’s value. From thesetheories, combined with our current economic environment, through the collection ofthe latest financial data of listed real estate companies in China, the use of acombination of empirical methods of factor analysis and multiple linear regression,trying to find the flaws of the financing structure of China’s real estate listedcompanies and make relevant recommendations based on the empirical results.Specific framework of this article is structured as follows:The first analysis of the background and purpose of the research methods andgeneral framework and focuses on domestic and international literature review of thefinancing structure of listed real estate companies in the study. The second chapterintroduces the concept of the financing structure and operating performance, andspecific analysis of the present stage of the financing structure and firm value theory.MM theory, the trade-off theory, agency theory and principal-agent theory. ChapterIII, combined with the actual situation of China’s real estate market, and describesthe characteristics of China’s real estate industry, the source of the financingchannels and financing structures of the status quo. And through the actual data tohelp discover the problem of financing faced by the real estate listed companies in China: a single financing channels in China, the high profitability of theasset-liability ratio and current assets-liability ratio is too high, the shareholdingstructure. Chapter IV, this chapter is key sections of this article, by analysis of the2009-2011three-year data of49listed real estate companies. Because singleindicators measure the limitations of the company’s operating performance, thisarticle through multiple financial indicators for factor analysis for comprehensiveperformance, to obtain a comprehensive performance value reflects the operatingperformance of listed real estate companies. And conduct in-depth research andanalysis by multiple linear regression and stepwise multiple linear regression.Chapter V, through the empirical analysis of the previous chapter, drawn debt ratio,debt ratio of current assets to its operating performance negatively correlated, whichwas mainly due to China’s real estate financing structure of listed companies a single,short-term debt too much can’t be dispersed corporate finance risk; stake of thelargest shareholder, company size and growth of the Company and its operatingperformance is positively correlated, this is because the real estate market is notdeveloped, the concentration of Shareholders can reduce agency costs, is conduciveto the supervision and management of the enterprise, and company size, the largerand stronger growth, will increase investor confidence, reduce corporate financingcosts and financing risks; proportion of state-owned shares, the proportion ofoutstanding shares of proportion and legal person shares their operating performancerelated to sex was not significant, which is mainly in the equity sub-set of reform,the effect is more obvious, slowly reduce the proportion of state-owned shares, andmaintained at a relatively low level, did not affect the business performance of listedreal estate companies. Issues set forth in the face of empirical results; we propose toimprove the real estate listed companies in China dilemma recommendations,elaborated from the financing structure of corporate liabilities, equity structure andother aspects of the three aspects. Chapter Introduction In this paper, the limitationsand shortcomings in the research process, and propose a new outlook.