The Relationship Research Between Capital Structure And Corporate Performance Of The Listed Real Estate Companies In China

The real estate industry develops rapidly in recent years. The development of the real estate market is related to the development of the national economy of our country directly. Real estate industry is closely related to all of us, so the high correlation make the development of the real estate industry has the effect of driving the development of other industries. The real estate listed companies are the backbone of the real estate industry, their performance directly affect the real estate industry’s long-term development. Real estate is a capital-intensive industry. It is quite difficult for them to use their own capital only to maintain the long-term development. Therefor the financing ability is especially important for the real estate enterprises. The real estate enterprises should choose the suitable financing way according to their own circumstance. Although there are a lot of research about the capital structure and corporate performance, the research in the real estate industry is relatively small. And because of the sample data, time and the variable selection, there is much difference between the conclusions.The purpose of this paper is to combine the theoretical knowledge and empirical model to predict whether there is relationship between capital structure and performance of the listed real estate company. Previous chapters basically define capital structure and performance and analyze the relevant theory. Later chapters will build some models to go on with the empirical research on capital structure and performance. In this paper, we filter a-share listed130companies and finally select60a-share listed real estate companies as sample data. These companies are divided into two types according to the registered capital.Different from other research, this paper does not use single financial index to represent the corporate performance, but using multiple indexes to measure corporate performance and use factor analysis to quantify performance. Then use the quantitative comprehensive scores and the four indexes which represent capital structure to go ahead with the regression analysis. Finally we come to a conclusion about the relationship between capital structure and corporate performance and put forward some policy suggestions. Hope to help the companies to improve their performance. These two kinds of companies should keep appropriate proportion of debt and equity concentration, not pursuing tax shield effect blindly. And they should improve their management so as to improve the corporate performance.