Analysis Of Financing Structure Of Listed Real Estate Companies In China

The real estate industry is the pillar industry in China,and there are many related industries,such as construction,steel,finance,decoration and so on.Therefore,the benign development of the real estate industry is closely bound to every economic and social participant.As the real estate industry is characterized by large investment and long construction cycle,it is commonly requires large amounts of money capital support for enterprises in their daily project construction and operation process.Therefore,the financing problem of real estate enterprises has become the top priority in their work.However,due to the increasing pressure of economic transformation and the continuous regulation of the real estate industry by the state,financing for real estate companies has become more difficult.So in this environment,listed real estate companies are supposed to examine the problems in their own financing structure,which should be optimized continuously,so that to improve the efficiency of capital use.Based on the above background,this paper intends to explore the problems in the financing structure of listed real estate companies.In the full absorption of the predecessors on the basis of research results,the study analyzes current development situation and financing status of the real estate industry,and finds that the real estate companies generally have a high asset-liability ratio and a large proportion of debt financing.However,the impacts of financing ratios on business performance need to be judged by empirical analysis.Thus,the financial data of 41 A-share real estate listed companies for the past 5 years are selected as the research samples,and are investigated by the empirical analysis method of multiple regression analysis in this paper.Through the multiple regression analysis,it is concluded that there is a significant positive correlation between the company’s operating performance and the debt financing ratio in the endogenous financing ratio and the exogenous financing ratio,and the correlation coefficient with the endogenous financing ratio is much larger than that with the debt financing ratio.Besides,there is no significant correlation between business performance and equity financing ratio.The above empirical research results show that the financing structure of China’s listed real estate companies is not reasonable and does not fully in line with the priority financing theory.Therefore,this article recommends that listed real estate companies should increase the proportion of endogenous financing,expand financing channels,and the country should establish long-term mechanisms to reduce frequent policy adjustments.Based on the synthesis of previous research results,this paper through empirical analysis of the sample real estate listed company’s financing structure and corporate operating performance,draws conclusions that endogenous financing has a greater impact on corporate operating performance,and puts forward relevant recommendations in order to optimize real estate listing The company’s financing structure provides a useful reference.There are 8 pictures,9 tables,and 39 references in this article.