An Empirical Study On Relationship Between Capital Structure And Corporate Performance Of Listed Real Estate Companies

In recent years, the development of real estate industry in our country is very rapid. It plays a very important role to our country national economy and is the pillar industry of the national economy. The development of real estate industry is conductive to the healthy development of China’s economy. In this case, the research of the relation between capital structure and company performance of real listed companies is more and more important in theory and realistic meaning. As a major industry, real estate has its own characteristics. Its capital demand is high and has long payback period, high return, high rate of assets and liabilities. After a period of research, scholars have not agreed conclusion. There are still controversies between capital structure and corporate performance.The paper firstly introduces the theory of capital structure, company performance theory and the relationship between them. Then analyze the capital structure and performance of real estate listed companies. Then come a conclusion that the capital structure has high asset-liability, the flow indebted rate is higher, the change of ownership concentration degree is little and the proportion of state-owned shares and corporate performance decline. The performance’s characteristics have high profit level, a smaller scale on management and large fluctuation of the operating performance. And then select296sample data of74real estate companies from2007to2010which listed in shanghai or shengzhen. According to the problem of choosing one-sided of performance index on the existing empirical studies, the paper chooses the rate of return on net assets and Tobin’Q on the performance indicators. Firstly analysis the capital structure and company performance of sample companies according to usage of descriptive statistical. Then establish the model of multivariate and linear regression, bring the rate of return on net assets and Tobin’Q to the regression analysis model as explanatory variables. Considering the performance be affecting the capital structure, divide into two groups of good enterprises and bad enterprises to regression according to median of the rate of return on net assets and Tobin’Q. The conclusion through empirical analysis:the good enterprise’s rate of assets and liabilities and net assets income rate is positive correlation, bad enterprise’s rate of assets and liabilities and net assets income rate is inversely related. Whether it is good or bad enterprises,the rate of assets and liabilities and Tobin’Q is negative correlation; Good enterprise’current debt ratio and Tobin’Q is positive correlation; Good enterprise’ degree of ownership concentration and the rate of return on net assets is positive correlation, while the bad enterprises’degree of ownership concentration has nothing to do with the company performance; The proportion of state-owned shares has nothing to do with the corporate performance. According to the research conclusion and the market situation, for the poor performance of company are proposed:reduce quantity of the bank loans; increase the financing of rights and interests; explore new financing channels; optimize equity structure, reduce in-house person to control. For good performance of company are suggested:strive for actively bank loans; active bond issue, strengthen performance sinking mechanism construction; keep the appropriate the ownership concentration degree.