Research On Financial Leverage And Influencing Factors Of Real Estate Listed Companies

Under the background of supply-side reform,as a key industry of China’s economic development,the development and operation of the real estate industry has been highly valued by the government and all sectors of society.As a capital-intensive industry,real estate financing is the key link of its operation.The characteristics of large capital demand,long production cycle and long capital return period determine that the real estate industry is more dependent on financial leverage than other industries.Many real estate companies continue to adopt high-leverage management strategy,resulting in a higher debt scale.In the current complex economic environment and the background of slowing econonic growth,the high debt model of the real estate industry,once business activities have problems,is likely to lead to serious financial crisis of the company.Therefore,it is very important for the stable and healthy development of the real estate industry to make appropriate use of financial leverage and control the level of financial leverage.On the basis of reviewing the relevant literature on financial leverage and its influencing factors at home and abroad,this paper summarizes the development status of listed real estate companies and the characteristics of real estate industry in China.This paper makes a descriptive analysis of the basic financial data of real estate listed companies from 2016 to 2018,and expounds the current situation of financial leverage of real estate listed companies.Based on the analysis of the internal and external factors of financial leverage in real estate industry,five internal effects of financial leverage are selected according to the financial indicators of 102 real estate listed companies in Shanghai and Shenzhen A-shares from 2016 to 2018.This paper makes an empirical analysis of the relevant factors and puts forward some countermeasures and suggestions for optimizing financial leverage.The main conclusions of this paper include:(1)Real estate listed companies belong to the highly leveraged operation mode.From 2016 to 2018,the average asset-liability ratio of A-share real estate listed companies in Shanghai and Shenzhen is 67.8%.Among them,about 50%of the company’s asset-liability ratio is more than 70%,and about 10%of the company’s financial leverage coefficient is more than 2.In theory,from 2016 to 2018,the reasonable range of financial leverage of real estate listed companies is 50%to 70%.(2)Empirical analysis of internal factors of financial leverage shows that there is a significant positive correlation between company size,growth rate and asset structure and financial leverage,and a signifieant negative correlation between profitability and financial leverage,while there is no significant correlation between operating ability and financial leverage.The possible innovations of this paper are:(1)The research object is subdivided into specific industries,and the research is targeted.(2)The research data are relatively new and time-sensitive.