Research On The Real Estate Listed Companies Performance Effect Of Capital Structure

Capital structure decision is an important financial management decision. According to the company’s state of operation, taking reasonable way of financing and changing the capital structure properly has an important role in the rational and healthy development of enterprises. Theoretical study on capital structure began earlier abroad, effect of capital structure on corporate performance has always been the researching focus of foreign scholars and a series of theoretical research and empirical related research followed. While quantitative research in this area is not abundant at home. Since the Chinese market economy started relatively late, the financial market development is not mature and the corporate governance is not standard, it is not appropriate to apply foreign theories directly to analyzing the domestic enterprises’financing situation. Therefore, in the background of modern domestic markets, studying the effect of capital structure on corporate performance is of great significance to the controlling capital structure intelligently and improving financial performance.The national housing system reform was introduced in1988. Housing reform pushes forward the development of China’s real estate market, and promotes the progress of China’s economy strong. However, there are signs of overheating in real estate market, and problems of corporate governance expose in recent years. The healthy operation of the real estate industry has important implications for economic development and social stability, so this article takes the real estate market as researching object, and uses quantitative analyzing methods, to study how capital structures affect corporate performance, and give the appropriate policy recommendations.This overall researching approach is as follows:first, sum up the capital structure theory research abroad, analyze the two-dual effect of debt on corporate performance from the positive and negative point, and systemize related empirical research results at home and abroad. Second, describe the situation and problems of financial structure in modern China’s real estate industry. Third, began the analysis section. First Ⅰ establish the corporate performance evaluation system and find corporate performance score using factor analysis method, then bring relevant financial variables into the panel model to conduct regression analyzing model. Eventually, the article draw the conclusion that there is inverted-U-shape relation between asset-liability ratio and performance of listed companies in domestic real estate, and make a compare the ideal financing structure to the current financing structure and makes policy recommendations.