Research Of Captial Structure’s Impacts On Corporate Performance For Listed Real Estate Companies

Performance is one of the research which has important theoretical and practical significance, and has been extensively studied and followed by academics and practitioners. Since the MM theory, scholars have been researched the topic of the relationship between capital structure and corporate value, but they didn’t reach a same conclusion. The real estate industry has the characteristic of capital-intensive and long period to revoke, so a good capital structure s conducive to the company’s operations and development. At present, China’s real estate industry is under a critical period of consolidation, restructuring and upgrading, companies must constantly improve the company’s performance in order to achieve a long-term development. Therefore, it’s very meaningful to study the impact of real estate capital structure on the company’s performance and optimize the capital structure.This essay uses normative and empirical research methods. Firstly, it presents the background, purpose and significance. Secondly, I write the literature review by a lot of reading, and define the capital structure and corporate performance. The essay also presents the theoretical basis, the impact mechanism and the situation. Then, I analyze the current situation, and do the empirical research on this issue through the establishment of assumptions, define variables, sample selection and so on. At last, I get the final conclusion and give my recommendations.