Debt Levels Impact On Real Estate Corporate Sustainable Growth

In recent years, Since the real estate business is affected state regulation and market shocks, the real estate business capital chain has become very fragile, money has become the shackles of the real estate business development, how to solve the problem of shortage of funds has become the key to whether the long-term development of the real estate business in the host. Reasonable debt management can bring more money for the enterprise, activate corporate cash flows and play a financial leverage effect, so that the real estate businesses get more revenue.This paper analyzes phenomenon of real estate companies with high debt levels, irrational debt structure, and slow pace of sustainable growth. And further investigate the effect of corporate debt levels to sustainable growth of enterprises. In the theory of capital structure, debt management companies have been more perfect exposition, but studies abroad cannot be fully applicable to our Enterprises, so this real estate listed companies in Shanghai and Shenzhen as the research object, systematic analysis how debt levels affect the sustainable growth of the real estate business.This paper focus on enterprises debt levels and debt structure, analyzes the following four aspects:(1)By introducing liability structure theory and the theory of sustainable growth, this article pave the way for the analysis of debt levels on a sustainable growth of enterprises;(2)Analysis the level of corporate debt status and the net profit margin growth conditions, and analysis how enterprises debt levels impact on the sustainable growth from a different perspective. In addition, this paper introduces the term structure of liabilities theory, with long, short-term studies in this paper gearing level of sustainable growth deepening;(3)Taking2012as the financial data of listed real estate companies in the study, and demonstrate influence of enterprises debt levels sustainable enterprises growth by correlation analysis, regression analysis, curve estimation;(4) According to the results of the regression analysis, pointing out the reasons for the high levels of enterprises debt and the need to ensure a reasonable balance, and to make recommendations.