Influence Of Listed Real Estate Companies Debt Financing On Corporate Performance

The real estate industry is greater impacted by the macroeconomic and macro-control policies,which charaterristics is capital-intensive and high debt.So,good capital structure is critical to the development for the real estate enterprises and the industry.At present,the real estate market is in the critical period of industry intergration as well as industry restructuring and upgrading,so the real estate enterprises need to continuously strengthen internal management and improve the corporate performance to obtain sustainable development.The real estate industry is prefer to debt financing, and debt financing is a important way of corporate financing which directly affect the captical struture and corporate performance. Therefore, researching the real estate enterprise’debt financing affect the corporate performance will help to optimize the capital structure and promote corporate performance.Choosing the different debt financing, the corporate performance will also different. Firstly,this paper detailed analysis of the influence of different debt financing on corporate performance according to the MM theory, trade-off theory,incentive theory,signal transfer theory,pecking order theory and combining the current situation of debt financing of real estate listed company.At the same time, tectonic ing the real estate listed companies’ comprehensive performance by using Factor Analysis as explained variable, and selecting asset to debt ratio,short-term debt ratio,long-term debt ratio,bank loan ratio and commercial credit ratio as explaining variable from the overall level of debt, maturity structure and sources structure to build the model.Then,using the data of Chinese real estate listed company from2007to2011,an empirical study is conducted.Results shows that asset to debt ratio, short-term debt ratio and commercial credit ratio are significantly negative with corporate performance, long-term debt is significantly positive with corporate performance, bank loan ratio is positive with corporate performance,but not significant. As a result, the real estate listed company should moderately reduce the debt ratio, strengthen the company internal financing ability and expand the scale of equity financing. In optimizing of debt maturity structure, we should arrange reasonably for short and long term debt portfolio by removing the short-term behavior caused by excessive use of short-term debt, playing the positive role of long-term debt on corporate performance. In the choice of debt resources, we should diversify financing channels and develop the real estate securities market actively. By a combination of different debt, optimizing the structure of real estate listed companies’ debt financing and improving the capital efficiency, thereby enhancing the company’s performance. At the same, this study provides a reference for the development and expansion of the real estate industry.