A Study on Financing Efficiency of Real Estate Companies and Innovative Financing Channels

摘要

The real estate industry plays an imperative role in Chinese economy. However, it becomes increasingly tough for real estate companies to finance in the current market. The challenge in financing indeed brings some constraints to these enterprises and has some negative influences on the whole industry. Today real estate companies are expanding too fast, and they do not pay enough attention to the concept of "enterprise financing efficiency". However, as domestic bank loan conditions become more and more stringent, the real estate developers are in urgent need of exploring new financing channels. This paper analyses the financing efficiency of Chinese real estate companies and the traditional financing channels used by the industry in the past. By means of Data Envelopment Analysis model, this paper analyzes whether the major real estate companies utilize their financing capital efficiently and suggests some practical and innovative approaches to help enterprises better accommodate market change.