Research On The Impact Of Debt Financing To Corporate Performance Of Chinese Listed Companies

The real estate industry in China have developed rapidly in recent years and gathered a lot of money, due to the different situation of our country the macro-control policy and the economic situation in the country are likely to affect the prospects for the real estate industry. Currently, facing a series of control measures of the government and other factors, real estate prices in some areas have declined, if the real estate market wants to develop sustainably and healthily, it is bound to experience great challenge. Therefore, listed real estate companies have to transform and upgrade in the external, and strengthen internal management, then obtaining more long-term development is possible. From financing channels of the real estate industry, raising funds through debt is an important and common way. Also with respect to our other industries, it has high overall debt level and carries great risks. Therefore, the research and discussion on listed real estate company’s debt financing situation and its impact on company performance will help the real estate business optimize the financing structure and then improve the company performance.In order to study the impact of debt financing on operating efficiency of listed real estate companies, the article in the beginning summarizes the domestic and international research trends about the impact of debt financing on company performance and learn previous research ideas and methods; Then according to MM Theory, Balance Theory, Agency Cost Theory, Signaling Theory and Pecking Order Theory, and then combining with the development characteristics and status of debt financing of listed real estate companies, all this work paves the way for the empirical design; Then from three angles of the overall level of debt, debt maturity structure and debt source structure the paper proposed five hypotheses, and selected ROE as the dependent variable, with asset-liability ratio, short-term debt ratio, long-term debt ratio, bank loan rates and commercial credit rate as the independent variable established regression model. Finally, it selected panel data of 100 listed real estate companies in 2010 to 2013 to regress and analysis and verify the hypotheses.For sorting and analyzing the empirical test results, the results show that the real estate listed companies in our country rely on debt financing and their overall level of debt was on the high side, this would result in a negative impact on corporate performance, but the effect was not significant. In the debt maturity structure of the listed real estate companies, the results showed that short-term debt had a negative impact on corporate performance, and the long-term debt produced positive impact on corporate performance;In the debt sources structure of the listed real estate companies, the proportion of commercial credit and bank borrowing was too high, both led to negative impact on corporate performance. Combining the empirical findings, and taking into account debt financing environment of our listed real estate companies as well as existing problems in the current economic climate,the author suggested that we should reasonably plan overall level of debt financing and equity financing and debt maturity structure, take advantage of the Internet financial to explore more debt financing channels, fully give play to the role of bank management and constraints, at the same time improve all aspects of commercial credit system to protect the interests of creditors. The author hoped that the research conclusion and recommendations of this article would provide some thoughts and support to optimize the financing structure of listed real estate companies and help them develop healthily and rapidly.