An Empirical Study Of The Relationship Between Capital Structure And Performance Of The Chinese Listed Real Estate Companies

Capital structure of the enterprise is a major research topic of great theoretical and practical significance, which has a great influence on the corporate performance mainly through Debt structure and shareholding structure of an enterprise. From 1958 the MM theory in the beginning, the capital structure has become a focal area of financial study. This paper focuses on the relationship between the Chinese listed real estate company's capital structure and corporate performance as a research object, from both theoretical and empirical analysis of China's real estate situation in the capital structure of listed companies on the impact of corporate performance. Through a lot of review of the Literature and theoretical analysis, this paper first proposes several assumptions, and then does the empirical study with 2002 to 2005 data.The results show that there exists a best capital structure in the Chinese listed real estate companies; the dominance of only one shareholder has a negative impact on performance, stockholdings balances improves enterprise development, the nature of the largest shareholder has little effect on performance; The incentive effects and Supervision don't affect the performance significantly and neither the scale of the company.Finally, basing on the empirical results, this paper would propose several suggestions on how to optimize the capital structure of listed companies to enhance corporate performance.