Research On The Relationship Between Corporate Capital Structure?Governance Level And Firm Performance

In recent years,under the boost of market demand and the macroeconomic recovery support,the overall price of commercial housing in the country has shown an increasing trend.The state has formulated strict measures to regulate the development of the real estate industry,which has an important impact on curbing the excessive growth of housing prices.And also exposes the industry characteristics of Chinese real estate enterprises that are easy to be influence of national policies.The operation of real estate enterprises requires a large amount of funds.Bank loans are the main source of funds.The emergence of new financing instruments has alleviated this pressure to a certain extent,but it has also changed its capital structure.The capital structure directly affects the capital cost of the enterprise or indirectly affects the business performance through the corporate governance structure.Compared with general enterprises,the impact of the capital structure of real estate listed companies on business performance is special.Exploring the correlation between its capital structure and business performance can not only find out the problems of capital structure,but also propose suggestions for improving operational efficiency and the level of corporate governance,thereby increasing the competitiveness of real estate listed companies and promoting the reform and innovation of China's real estate system.This paper first reviews the theoretical knowledge of capital structure and business performance.Then introduced the present situation of the development of real estate companies and its capital structure also includes the operating performance.Followed by an empirical analysis of the sample of real estate listed companies.The empirical analysis is based on the sample of 123 real estate companies listed on the Shanghai and Shenzhen stock exchanges in China in 2013-2017.The net assets return rate reflecting the business performance of the company was selected as the corporate governance of the independent directors in the board of directors.The horizontal index,the assetliability ratio,the current debt ratio,and the proportion of the top ten shareholders' shareholdings are used as the capital structure to construct a regression model of corporate governance,capital structure and business performance.The results of the model operation show that the current asset-liability ratio is negatively correlated with business performance;the current debt ratio is positively related to business performance;the equity concentration is positively related to business performance,and further discovers assets by studying the cross-items of corporate capital structure and governance level.The higher the debt ratio and the shareholding ratio of the top ten shareholders,the higher the proportion of independent directors in the board of directors,which enhances the business performance of the company.On the contrary,the higher the current debt ratio,the weaker the role of independent directors in improving corporate performance.From the perspective of the lag period,there is a positive correlation between the asset-liability ratio of the previous period and the financial performance of the company.Based on the research results,this paper puts forward some suggestions to optimize the capital structure of China's real estate listed companies.To optimize the debt,equity and financing structure,and to improve the management level.