The Influence Of Real Estate Financing Methods On Business Performance In The Winter Of Leveraging

In 2018,China's real estate industry ushered in a tremendous shock.From the demand side,the Sino-US trade war in the middle of the year further stimulated the downturn of the domestic economy,increased business difficulties,the expectation of declining income of residents,and the decline of the ability to buy houses,all of which led to a decline in the demand for real estate market;from the supply side,under the environment of strong supervision and deleveraging,the financial situation was tight,and the financing channels of real estate enterprises were limited.After the adjustment and control of the deleveraging policies,the financing difficulty of the real estate industry is increasing.In the social environment facing downward pressure,the financing ability of real estate enterprises is tested.The survival of the fittest in the whole industry is accelerated.Vanke,a well-known old real estate enterprise,even shouts the slogan of"survive".Under the financial constraints of"deleveraging"which guides the healthy development of real estate,it is becoming more and more urgent for real estate enterprises to solve the financing problems under the current environment.Firstly,this paper elaborates the financing methods and related concepts and theories of the real estate industry,analyses the current situation and financing mode of the real estate enterprises in China,displays the financing status and characteristics of the real estate enterprises in China,and analyses the impact on the financing of the real estate enterprises in the winter of de-leveraging.Then,72 real estate listed companies before and after the implementation of the de-leveraging policy from 2005 to 2017 are selected.The financing structure and financing methods of real estate listed companies are analyzed,and regression is made by introducing dummy variables to explore whether there is significant difference between the financing methods before and after the de-leveraging policy.The comprehensive performance F value is obtained by factor analysis.The financing indicators of real estate companies,including endogenous financing ratio,equity financing ratio,long-term borrowing financing ratio,short-term borrowing financing ratio and commercial credit financing ratio,are selected as independent variables to explore the impact of financing structure on business performance.The virtual variables and cross variables are used to explore the financing knot before and after de-leverage,respectively.Regression analysis is made on the relationship between structure and enterprise performance.Combining with empirical analysis,the following conclusions are drawn:(1)There is no significant correlation between endogenous financing and corporate performance before the implementation of de-leveraging policy.The implementation of de-leveraging policy strengthens the positive impact of endogenous financing on corporate performance.(2)Equity financing has a certain impact on corporate performance before the implementation of the de-leveraging policy,but its significance level is poor.After the implementation of the de-leveraging policy,equity financing has a significant positive impact on corporate performance,which indicates that the implementation of the de-leveraging policy has highlighted the importance of equity financing for enterprises,and can bring positive effects to business performance of enterprises.(3)For debt financing,before the implementation of the de-leveraging policy,the long-term loan financing ratio had a significant negative impact on the performance of enterprises.Short-term loan financing ratio had no significant correlation with the performance of enterprises.After the implementation of the de-leveraging policy,both of them had a significant negative correlation with the performance of enterprises,but for short-term loans,the de-leveraging effect was significant.The rod policy coefficient has not passed the significance test,which shows that the de-leverage policy has no significant impact on the short-term borrowing financing.(4)The commercial credit financing ratio has changed from no significant correlation before the implementation of the de-leverage policy to a significant positive correlation.It shows that the positive impact of credit financing on business performance is strengthened after de-leveraging.(5)For bond financing,before the implementation of the de-leveraging policy,the bond financing rate has a significant positive impact on corporate performance.After the implementation of the de-leveraging policy,its coefficient decreases,indicating that the impact of bond financing on corporate performance is weakened.(6)For off-balance-sheet financing,before the implementation of the de-leveraging policy,the degree of asset securitization has a significant positive impact on corporate performance.After the implementation of the de-leveraging policy,its coefficient has decreased,indicating that the impact of off-balance-sheet financing on corporate performance has weakened.According to the relevant research results of this paper,the following suggestions are put forward:firstly,broaden the financing mode of real estate industry;secondly,establish good commercial credit to obtain more stable commercial credit financing;thirdly,choose a reasonable proportion of equity financing level.