An Analysis Of The Impact Of The Debt Financing Structure Of Chinese Real Estate Companies On Their Operating Performance

In recent years,the pace of development of China's real estate industry has continued to accelerate,which has also contributed to the growth of China's national economy.In the foreign financing of the real estate industry,debt financing accounts for a large proportion,and a large part of debt financing funds comes from bank borrowings.In China,the real estate industry companies have a high liquidity ratio and the proportion of bank borrowings is also at a relatively high level.This makes real estate companies in a more passive position,and also brings huge risks to the banking system.From the perspective of reducing financial risks,it is necessary to optimize the debt financing structure of real estate companies.As scholars at home and abroad have not yet reached a consensus on the relationship between the debt structure of real estate companies and their business performance,this article continues to explore this subject through empirical research methods,with a view to making contributions to optimizing the debt structure of real estate companies and improving business performance.In the empirical analysis section,this paper selects 82 real estate companies listed on the A-share market before 2007-2015 as samples and establishes a multiple regression model for panel data.It concludes that the increase in current debt ratio is beneficial to improve company performance.An excessively high proportion of bank loans will reduce the company's operating performance.Based on the empirical analysis results,this paper draws the following conclusions:First,the current liabilities of listed companies in the real estate industry can reduce the cost of entrusted agency and enhance the utilization rate of cash.Second,excessively high ratios of bank loans are not conducive to improving corporate performance.Commercial banks can be encouraged to hold shares in real estate companies and strengthen supervision.Third,relevant policies should be introduced to encourage real estate companies to raise funds in the financial market by issuing bonds.