Research on the Relationship between Capital Structure and Corporate Performance in Real Estate Industry

摘要

The investigation of the relationship between capital structure and corporate performance hasn’t reached an agreement at present, and the related research on the real estate industry is any the less. So the paper takes the data of real estate industry from 2008 to 2010 as the sample, introduces the concept of influence degree, and establishes a multiple linear regression model based on the modified Cobb Douglas function to analyze the relationship between its capital structure and corporate performance. The conclusions are drawn: asset-liability ratio and ownership concentration positively correlate with corporate performance; liability with interest ratio and state ownership ratio demonstrate negative relationship with corporate performance; the influence degree of asset-liability ratio is the highest of all the factors. Finally, based on the conclusions drawn from our experiment, scientific suggestions are put forward to optimize the real estate companies’ capital structure.