The Influence Of Trade Credit On The Business Performance Of China's Real Estate Listed Companies And Its Mechanism

For a long time,the source of funds for real estate enterprises in China has been mainly based on bank credit,supplemented by other channels.As for the focus on trade credit,there are even fewer people.After the outbreak of the international financial crisis in 2008,bank credit tightened.In particular,since the original CBRC deployed banks in 2017 to carry out the “Ten chaos” self-examination,the banks have severely investigated and dealt with the transfusion behavior of real estate enterprises through peers and wealth management channels.The funds from enterprises' bank credits have fallen sharply,and the trade credits that are not valued in traditional financing have gradually begun to attract people's attention.In this context,it is a very meaningful topic to study the impact of real estate business credit on corporate performance and its mechanism of action.First of all,before examining the impact of China's trade credit and real estate listed companies on business performance,the relevant literature and theory are sorted out.Deepen the understanding of its concepts by studying the literature on business credit and corporate performance.According to the research results at home and abroad,the academic community has not reached a unified opinion on the relationship between trade credit and corporate performance,and compiled the opinions of all parties for summary.this paper compares and analyzes the trade credit of real estate enterprises and non-real estate enterprises in three years(2015-2017),and concludes that there are significant differences between trade credit and non-real estate enterprises in real estate enterprises in China.Therefore,the research on trade credit of real estate enterprises cannot be used in the past research results of listed companies.Then,this paper firstly studies the impact of trade credit on the business performance of China's real estate listed companies by taking samples of China's A-share real estate listed companies from 2008 to 2017.An empirical test of the research hypothesis was carried out by establishing a panel data model.The conclusions of this paper show that under the same conditions,trade credit and real estate business performance have a significant role in promoting.Therefore,for real estate listed companies,improving the business credit of enterprises is conducive to the development of business performance.Based on the above industry background research,this paper analyzes the status quo and existing problems of the case company Poly Real Estate Trade credit,and uses multiple linear regression to empirically study the impact of Poly Real Estate Trade credit and Business Performance,and obtains the following conclusions: Poly Real Estate The trade credit has a significant positive correlation with the company's operating performance,and compared with the real estate listed companies,it is found that the positive impact of Poly Real Estate's trade credit is more obvious.That is to say,the better the trade credit,the more obvious the positive impact of trade credit on business performance.Next,this paper continues to study Poly Real Estate,and further explores the mechanism of Poly Real Estate Trade credit on business performance.Through relevant literature analysis and theoretical support,this paper introduces the financial cost of intermediate variables,and then through empirical analysis,we can find that the trade credit of Poly Real Estate can significantly reduce the financial expenses of enterprises,and thus promote the business performance of enterprises.Finally,through the analysis of the above empirical research results,the conclusions of this paper are summarized.Combined with the actual situation of Poly Real Estate Trade credit,this paper analyzes the factors that limit the performance of Poly Real Estate Company,and puts forward relevant suggestions for Poly Real Estate,which will help the real estate enterprises to optimize development.At the same time,it provides reference for other real estate enterprises,and summarizes relevant inspirations to promote better development of enterprises.