Research On The Impact Of Capital Structure Of Listed Companies In China’s Real Estate Industry On Business Performance

The capital structure of an enterprise not only means the relative proportion of the debt,equity and assets of the enterprise,but also affects the financing cost,operation mode,market value and development direction of the enterprise.The real estate industry has always been an important part of the national economy.It has the characteristics of large capital demand,high policy dependence,perfect corporate governance structure,and transparent financial information.However,a series of problems have emerged in recent years of rapid growth.The leverage of housing enterprises is too high,the inventory pressure is increasing,and the excessive growth of housing prices in some cities has led to blind investment by housing companies,resulting in greater financial risks.Therefore,it is of great significance to study the relationship between the capital structure and operating performance of listed real estate companies in China,and to explore how to establish a sense of capital structure optimization and promote the healthy development of the industry.Based on the above background,this paper studies the current situation and characteristics of the capital structure of real estate listed companies in China based on the relevant literatures at home and abroad,and studies the correlation between the capital structure and business performance of real estate enterprises.The specific research contents include: Firstly,it analyzes the industry situation and the capital structure and business performance of listed companies,and deeply analyzes the different mechanisms of financing methods,debt structure and ownership structure affecting business performance.Secondly,two performance indicators and five capital structure indicators are selected from the perspectives of profit and market.Two control variables are selected based on the characteristics of real estate industry,and the relevant assumptions about the direction of capital structure impact on business performance are proposed.Third,the public financial data of 106 A-share listed real estate companies in Shanghai and Shenzhen stock markets for the three years from 2015 to 2017 were selected to verify the correlation between capitalstructure and business performance.The research of the thesis holds that real estate enterprises should actively adjust the debt structure,reduce the asset-liability ratio,reduce the financing cost and realize the efficient operation of funds;real estate enterprises should establish an active transformation of capital structure optimization awareness and actively explore new financing methods;the government needs to establish pluralism.The debt financing environment provides policy support.The main innovations of this paper are as follows: First,the innovation of indicators,combined with the characteristics of the industry set the characteristics of indicators,the second is to select the accuracy of the scope of listed companies,select companies listed only in the A-shares.However,the paper still lacks the applicability of the research conclusions to non-listed companies and listed companies in transition,and further research is needed.