A Study On The Influence Of Financing Structure Of Real Estate Development Enterprises On Business Performance

In the research of financial theory at home and abroad,the optimization of financing structure has been playing an important role.When enterprises choose different financing methods,they will form different financing structures,produce different capital costs,and then have a direct impact on the business performance of enterprises.In addition,the financing structure will affect the corporate governance structure and agent’s economic behavior,thus indirectly affect the performance.At present,scholars at home and abroad have not reached a consensus conclusion on the relationship between financing structure and business performance.Previous studies have shown that different countries,industries and periods,due to different political and economic backgrounds,have different correlations between financing structure and business performance.Based on the above analysis,it is necessary to conduct in-depth analysis for a specific industry.The real estate industry is the pillar industry of China’s economic development,which is closely related to all walks of life.Its role in economic development cannot be ignored.At present,the listed companies in China’s real estate industry are mainly engaged in development and operation business,which has the characteristics of large capital demand,high asset liability ratio and easy to be affected by the national macro-control policies.A good financing mode and financing structure are more important for real estate development enterprises.Therefore,this paper selects listed real estate development enterprises for in-depth analysis,studies the impact of financing structure on performance of real estate development enterprises in China,and explores how to optimize financing structure to promote business performance and healthy development of the industry.Based on the above background,this paper first systematically combs the relevant literature at home and abroad.Secondly,it introduces the concept of financing structure and operating performance,and expounds the relevant theories.Thirdly,it analyzes the current situation of financing structure and operating performance of real estate development enterprises.Based on the analysis of theory and current situation,it puts forward the hypothesis and empirical research on the relationship between financing structure and operating performance of real estate development enterprises.Finally,according to the results of empirical research combined with the current situation of the development of targeted recommendations.The empirical results show that the asset liability ratio,net debt ratio and business performance of real estate development enterprises in China are negatively correlated,the ownership structure and business performance are not significantly correlated,the company size and business performance are positively correlated,and the company growth and business performance are not significantly correlated.Based on the above conclusions,this paper puts forward some suggestions for real estate development enterprises,such as moderate control of debt ratio,broadening financing channels and strengthening large-scale development,in order to optimize the financing structure of real estate development enterprises and improve their business performance.