Real Estate Capital Structure's Influence On The Profitability Of Listed Companies

The real estate industry is playing a more and more important role in our economy in recent years. The real estate industry is a capital-intensive industry and the two most famous characters of this industry are high asset-liability ratio and limited financing channels. The existing problems relating to the companies’capital structure has influenced the company performance a lot. More and more studies on the relationship of the capital structure and the company performance have been carried out.Firstly, the author introduces the background and existing problems, which bring out the research and the object.In the second part, after illustrating the theories of capital structure and company performance, the author introduces the studies having been made.In the third part, the author describes the real estate industry’s current status in different angles, including the capital structure, asset structure, cash flow ratios and so on.In the fourth part, the author introduces the research, including the hypothesis, research ideas, research methods, variables selection and so on.In the fifth part, the author makes the empirical research for the relationship of capital structure and company performance. The empirical research is carried out in three different situations, in which the companies are divided into three groups.In the last part, the author summarizes the research and gives some suggestions on how to improve the capital structure.