Study On The Growth Of Real Estate Listed Companies In China

The real estate industry as the dominant industry of nationaleconomy in our country, it plays an important role in national economicconstruction, social construction and so on. Whether the real estateindustry develop healthily，it has a close relationship with social stability,and affects the improvement in people’s quality of life. The real estatelisted company as a representative of the real estate industry, it obtainsgood results through the third decade years of development history. Butwe should not ignore the shortage of our country real estate listedcompanies, there is a growing "natural" annoyance: the corporategovernance structure nonstandard, weak core competence, unreasonablestructure of supply and demand. How to develop the real estate listedcompanies in China, the fact that how to improve the company growth isparticularly important. In view of this, on the basis of related enterprisegrowth theory, using principal component analysis and multivariateregression method, we set up the evaluation index system and model, andchoose100real estate development and management of listed companiesfrom Shanghai and Shenzhen stock from2008to2012as researchsamples for substantial research. The purpose of this study is to find outthe significantly positive correlation factors on the real estate industrylisted company growth. On the one hand, it can help enterprises to findout the key factors influencing the growth, by this way, we will putlimited resources into larger aspects of effects on corporate performance，on the other hand it can make the enterprise management and operationdecision-making more targeted and effective. The research conclusion ofthis paper is:(1) There is significantly positively related between thegrowth of real estate listed companies and company’s scale, it also saysthat the company scale is larger, growth ability, the more competitive ofthe enterprise. This is consistent with the expected results.(2) The growthof real estate listed companies is negatively related with the company’s capital structure. It is consistent with the result of the assumptions. Theproposed reason for this is that may because of China’s real estateindustry generally high asset-liability ratio, increasing the company’sfinancial risk and capital cost, which may hinder the growth of thecompany.(3) There is significantly positive correlation between theprofits of real estate listed companies and the company’s growth. Thecompany’s profit is the foundation of its existence and development, it isan enterprise the unremitting power of growth.(4) The growth off realestate listed companies has significantly positively related wish the abilityto operate. It is consistent with the result of the assumptions.(5) Thegreater the risk of real estate listed company, the company’s growingstronger.(6) The real estate listed company has the more cash, thecompany’s growth will be weaker. Because cash is characterized bystrong liquidity, but profitability is weak. The company’s cash will reducethe capital utilization ratio, affect other assets turnover, and affect thegrowth of the company.Finally, this paper according to the empirical research conclusionfrom respectively two angles of government and real estate listedcompany internal put forward suggestions for improvement. Governmentrecommends mainly include: stable housing sales price, adjust supply anddemand imbalance, improve the housing safeguard, perfect real estateinvestment credit policy and preventing financial risks. The listedcompany internal management Suggestions mainly include: expandingthe scale, achieve economies of scale effect, optimize company capitalstructure, perfecting corporate equity structure, improve the companyoperation ability and attention to the company growth, etc.