An Empirical Study On The Impact Of Financial Leverage On The Operational Performance Of Real Estate Enterprises In China

Real estate industry is the basic carrier of our national economy,and plays an important role in the development of national economy.At the same time,China's real estate enterprises have the characteristics of large demand for capital,long operating cycle,strong industrial relevance and high debt,which determine that China's real estate enterprises rely heavily on funds.Paying attention to the current situation of financial leverage in real estate enterprises in China,studying the impact of financial leverage level on their operating performance,and analyzing the relationship between the term structure of financial leverage and the source structure of financial leverage and the operating performance of real estate enterprises in China will help to optimize and adjust the structure of real estate enterprises in China and reduce the financial risk of real estate enterprises in China.It is beneficial to the stability and sustainable development of the national economy.Based on the previous research experience,this paper puts forward the research direction and methods of this paper.Then from three aspects of early capital theory,MM theory and agency cost theory,this paper collates the relevant theories and the mechanism of financial leverage's influence on business performance,analyses the incentive effect of financial leverage and the tax shield effect of financial leverage,and analyses the choice of financing methods between business managers and business owners,as well as the debt maturity of enterprises for leverage.Based on this,this paper discusses and assumes the relationship between the level of financial leverage and business performance.This paper chooses 115 A-share listed real estate enterprises in China from 2008 to 2017.Six financial indicators are selected from three aspects:profitability,turnover and development.The principal component analysis method is used to extract the comprehensive scoring system of real estate enterprises'operating performance.Based on these variables,panel data regression is used to analyze the overall level of financial leverage and different leverage debt of enterprises.This paper analyses the influence of financial leverage on the performance of listed real estate enterprises in China from three perspectives:time limit and source of composition.It is concluded that there is a negative correlation between the level of financial leverage and the operating performance of listed real estate enterprises in China,and there is a "inverted U" linear relationship between them;the long-term debt ratio has a positive impact on the operating performance of enterprises,while the short-term debt ratio has a negative impact on the operating performance of enterprises;there is a significant relationship between the bank loan rate and the pre-sale rate of houses and the operating performance of enterprises.Negative correlation;the interest rate of advance payment of construction enterprises has no significant correlation with business performance,but the impact direction is positive.Finally,based on the empirical conclusions,this paper puts forward relevant research suggestions for real estate enterprises and banks.