Empirical Study Of The Relationship Between Capital Structure And Financial Performance Of China’s Real Estate Listed Companies

As the market-oriented economy developing in our country, the real estate industryplays an indispensable role in the market-oriented economy and also its status as thebackbone in national economy is also attached importance to by the state. For the realestate industry’s particularity of large investment, it belongs to capital intensive enterpriseand the financial support of financing institution is also the important support of real estateindustry. So the functions of real estate industry’s capital structure and the corporateperformance financial information become more and more important, which shows likethat the financial institutions like bank needs to know the enterprise’s financial conditionsfor preventing risks as well as the enterprise also needs to optimize the capital structure torationally arrange the financial investment on the basis of knowing the current situation ofcapital structure and the influencing factors.The theory of modern capital structure starts from the MM theory jointly founded byMiller and Modingliani. After the striving of many scientists, the research result revealsthat MM theory does not form the perfect assumed condition in real world. Since the laterperiod of1970s, the new capital structure theory taking the information asymmetry theoryas the core injects fresh blood to the perfection of capital structure theory which makes thenew capital structure theory embark on the academic platform through replacing the oldcapital theory.Both the corporate governance and capital structure are the focused issue of thescholars in our country. In recent ten years, the real estate industry develops in a highspeed. The present problem, which is focused on by the people, is how to make the realestate industry develops healthily. The state has launched a series of policies for the realestate industry and the financing department also formulated a series of monitoring policieswhich can influence the financing channel and operating management of the real estateenterprises to a large extent. As everyone knows, the change of financing will bring thechange of real estate enterprise capital structure then the enterprise capital cost will also beinfluenced and then the financing performance of the company is influenced. So, the problem which is relevant to the capital structure in real estate industry becomes the hotpoints of scholars in our country. Many scholars in our country make a wide range ofresearch aiming at this problem, but do not form the consistent conclusion how the capitalstructure influences the financial performance.So the objective of writing this paper is to construct the relevant models of capitalstructure and financial performance of the real estate listed company in our country on thebasis of analyzing the capital structure theory and the company performance evaluationtheory as well as researches the real estate enterprise capital structure and financialperformance and emphatically discuss the relevant relationship between the real estateenterprise capital structure and financial performance and also try to confirm theoptimizing direction to the capital structure of the enterprise by using the specific financialdata of the real estate listed company in our country.