Research On The Impact Of Debt Financing On The Financial Performance Of Real Estate Listed Company

As one of the most important pillar industries of the national economy,whether the real estate industry can reasonably and effectively use debt financing to improve corporate performance is the key to the healthy development of the real estate industry in the future.It is theoretically analyzed that debt financing not only has a positive impact on corporate performance due to the tax credit effect and governance effect,but also has a negative impact on corporate performance due to the bankruptcy risk caused by debt financing,financial distress and agency costs.How to optimize and improve company performance is of great significance to promote the healthy and orderly development of real estate enterprises.This paper explores the impact of debt financing on corporate performance in the "Golden decade" stage and the downward real estate transformation phase in 2014-2017,and verifies the impact of debt financing on corporate performance by multiple linear regression empirical research combined with the financial data of listed real estate companies from 2004-2017.It is found that the relationship between debt financing and corporate performance is not greatly affected by the overall development of the real estate industry in these two stages.In these two stages,the asset-liability ratio of listed real estate companies is negatively correlated with corporate performance,indicating that the level of debt financing will lead to the decline of corporate performance;the debt maturity structure and debt source structure will affect corporate performance according to different classification methods.In terms of the duration of the debt,the increase of the long-term debt ratio will lead to the decline of corporate performance,the increase of the short-term debt proportion will lead to the improvement of corporate performance,and the increase of the commercial credit ratio will lead to the improvement of corporate performance from the perspective of the source of debt.An increase in the proportion of bank borrowing will lead to a decline in corporate performance.At last,some suggestions are put forward in view of the empirical results.