Empirical Research on the Impact of the Financial Structure on Corporate Performance of Real Estate Listed Firms in China
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The industry of real estate soars so rapidly that has become pillar industry in China recently. It is common to operate with liabilities in real estate industry, so researching the relationship between financing structure and corporate performance of real estate firms is important to the long-term development of the industry. The paper uses 135 listed real estate companies as samples, conducts an empirical research on the link of financial structure and corporate performance by the date from 2009 to 2016. The result shows that the state-owned share proportion has positive impact on corporate performance, equity multiplier has negative influence and current liability rate promotes corporate performance. The real estate firms should choose appropriate debt ratio and term structure of liability by their own situation and pay attention to the risk to improve their future revenue. In addition, national departments concerned not only strengthen the supervision of the earnings of the capital belong to the state also implement the policy of reduction of state-owned shares energetically to make market play an active role.
Financial structure, Corporate performance, Equity multiplier, Current liability rate