Research On The Impact Of Equity Financing And Debt Financing On The Performance Of Listed Real Estate Corporation

Equity financing and debt financing are the main forms of foreign financing,and foreign financing is an important part of the corporate financing structure.Different equity financing and debt financing ratios will lead to differences in financing costs,therefore affects the performance of the corporations.According to the past related domestic and foreign researches,choosing different method of external financing will have different effects in different industries,and have different relationships with firms' performance.Therefore,we cannot generalize for all industries,and have specific and further analysis for certain industry.With rapid development in recent years,the real estate industry has become the mainstay industry of our nation.The real estate industry has its own special character,which is the large demand of capital,so the healthy and sustainable development of the industry depends on whether a firm can access to enough capital.As one of the most important way of financing,external financing has significant impact on firm's performance.Currently the listed real estate companies in our country mainly depend on equity financing and loaning from bank to get external financing,which is relatively excessive,making the external financing structure and the choices of term not reasonable enough.Based on the previous discussion,the study of the relationship between external financing and firm's performance has important and practical meaning.This paper uses A-share listed real estate companies as study subjects.First the author will summarize domestic and foreign scholars' results on the influence of external financing to curations' performance,and analyzing the results on theoretical and influential aspects.With such foundation,the author will introduce the current status of external financing of A –share listed real estate companies,finding the problems within.Then building an econometric model to analyze the correlation between external financing of A – share listed real estate companies,with the empirical analysis method and analysis of option financing,short-term bank credit financing,long-term bank credit financing and business credit financing aspects.In the end the author will come up with relative policy suggestions to the current status of external financing of A – share listed real estate companies,based on the analysis in this paper,hoping that these advices will help our real estate industry to gain a healthy andsustainable development.Through analysis the author made following conclusions: option financing has the most positive effects on listed real estate companies' performance;short-term bank credit and long-term bank credit financing have significant negative effects on listed real estate companies' performance;business credit financing has non-significant correlation with listed real estate companies' performance.Based on these results,the author suggests that:1.Fairly use option financing and relatively rise up its proportion in corporate finance;2.Reduce the proportion of short-term bank credit financing and relatively rise the proportion of long-term bank credit financing,and optimizing the term structure;3.Further completing and developing the corporate bond market,enforcing the supervision of debt financing.