The Empirical Study On The Relationship Between Debt Finance And The Financial Performance Of The Listed Real Estate Corporations

Corporate finance debt is an important way to the direct influence corporate capital structure. The capital structure is not only affect on the cost of capital and corporate value, but also the corporate governance structure. it have great impact on country's economy,. China's real estate industry needs a lot of capital investment, At the same time, the investment recovery period is long and the estate price changed Frequently, so real estate industry have high risk. At present the real estate industry have high Asset-liability ratio, the profits of the real estate companies are particularly different. Studying on the Relationship between Debt Finance and the Financial Performance of the Listed Real Estate Corporations will help to optimize the financial structure and improve the real estate business performance.At present, the empirical studying on the relationship between debt finance and the financial performance of the listed real estate corporations is little, it usually study the relationship between the capital structure or equity finance and corporate performance. This paper divides debt into long-term and short-term, study the effect on corporate performance. In recent years our government has continuously tightening so that the rising cost of real estate companies, business had been hampered by the global financial crisis hit at the same time on the real estate company.In this paper, it use SPSS 11.5 statistical analysis software for analysis. The first chapter, explaining the background of studies and propose research purposes. ChapterⅡ, this article on debt financing and corporate performance related theories are described. ChapterⅢ, describe China's real estate listing company's capital structure and business performance. The fourth chapter analyzed 2006-2008 data from listed companies on China's real estate empirical studying on the relationship between debt finance and the financial performance of the listed real estate corporations. Chapter V, on the empirical results are analyzed, combined with the proposed improvements to improve China's real estate debt financing conditions and corporate performance.