An Empirical Study On The Relationship Between Growth And Financing Structure Of Real Estate Enterprises In China

Financing structure has a significant impact on long-term healthy development of enterprises and is a crucial domestic and foreign financial theory issue. To choose the right financing structure for the healthy and rapid development of enterprise, which reflects the company’s financing ability and capital operation effect and affects the corporate governance and business growth, has a profound effect. Therefore, to research the correlation between corporate financial structure and its growth has important theoretical value and practical significance. In recent years, the real estate industry yield value accounted for a considerable proportion of national economic yield. The development of the real estate industry plays a considerably crucial role in the process of development of the national economy. Whether or not sustain a long development after the real estate industry has accomplished flying start becomes the theorists and entrepreneurs focus of attention. And this study attempts to probe into the relationship between the real estate company growth and their financing structure, guide the real estate enterprises to adopt better management measures and help the real estate industry stakeholders to adjust their investment behavior based on the actual situation.This paper study the relationship between the listed real estate companies financing structure and their growth through literature research and empirical analysis. Through the factor analysis of total assets growth rate and other eight growth variables, the paper acquired comprehensive score of business growth. And through multiple linear regression of the relevant variables, the paper obtained the relevant relationship between the business financing structure and its growths. The full text contains six chapters. The first chapter is introduction. It contains the research background and significance, research content, method and framework and the article of innovation. The second chapter includes the theoretical analysis and literature review, defines the concepts of growth and financing structure, and summarizes the theories of growth and financing structures and the results of related research. The third chapter is the current development of the real estate industry. It makes a simple introduction of China’s real estate industry characteristics, financing channels and real estate companies’ financing structure characteristics. The fourth chapter is the hypotheses of research and model building. It proposes hypotheses, selects the relevant variables, builds the comprehensive growth indicators by the principal component analysis and constructs the multiple linear regression model. The fifth chapter is the empirical findings. It main contains the variable descriptive analysis and correlation analysis and the regression model variables analysis of the results. The sixth chapter is the conclusions and policy recommendations. And it makes the conclusions and puts forward the proposal for this paper study.This paper by empirical analysis obtains there was no significant correlation between the real estate listed companies financing structure and its growth. This paper made the recommendations for China’s real estate business and the relevant law departments as follow:Businesses should choose the appropriate capital structure and optimize the debt maturity structure. And the-government should not interfere market development too much.