Research On The Stability Of Listed Real Estate Corporate Earnings Influenced By Assets Structure

Asset structure and capital structure are important for businesses. Throughresearching literature papers, we found that domestic and foreign scholars areconcerned with most of the studies about the capital structure impacting thecompany’s revenue. However, studies made about the effect of the asset structures ofChina’s listed companies to income stability are very small. This paper explores theflaw of the previous literature, and realizes the importance of assets to firms. Assetstructure for the company’s liquidity can play the role of supervision and regulationand have an impact on corporate earnings stability. So the reasonable allocation ofresources become an important problem in priority for the enterprise. Reasonableassets structure not only can set up a foundation for enterprises to run smoothly,also can ensure enterprise managers to allocate funds more scientificly, to increasethe utilization of enterprise funds and enhance corporate earnings stability. So, it isimportant to optimize asset structure reasonably, if the corporate want to improvetheir earnings stability, they should pay considerable attention to researching assetstructure.As a capital-intensive industry, the source and distribution of funds is the mostimportant question that a firm should consider if it wants to develop healthily. Thedevelopment of China’s real estate enterprises is not mature yet, and withmacro-control policies, the revenue stability of the real estate industry has becomeincreasingly important. To analyze earnings stability, we should not just focus onwhether current income structure is reasonable or not, but deal with the dynamicanalysis of income structure for a time. By percentage composition method, we canevaluate the level and trend of the percentage of income structure. Asset structure,refers to the proportion of some certain assets to total assets of the enterprise. Assetsstructure reflected in the balance sheet on the left, In this paper, based on thecharacteristics of the selected industry, we select the the proportion of current assetsand its refinement indicators, including monetary capital, payable and pre-paymentand inventory to total assets as independent variables. We use literature analysismethod to evaluate corporate revenue explanatory variables, and we use this indexto be the basis of dependent variable and then we define the interpreted variable byadopting the method of math for the stability of earnings. This article selects realestate companies from2008to2012, listed in Shanghai and Shenzhen and establishmultiple regression analysis model and the mediation effect analysis, at the sametime the correlation between corporate earnings stability and the asset structure of the real estate industry is verified. Finally, based on the results of empirical research,we put forward suggestion and paths for optimizing the assets structure.