The Relationship between Capital Structure and Financial Performance of China’s Real Estate Listed Companies

摘要

After experiencing a roller coaster era of price rocketing and plumping, the development of China’s real estate industry will tend to be stable under the government’s macroeconomic control, which needs more effective financial management methods. This paper applies factor analysis to analyze the relationship between capital structure and financial performance of real estate listed companies in Shanghai Stock Exchange from 2010 to 2012, which concludes that the capital structure of real estate listed companies is negatively related to its financial performance, and provides related suggestions on optimization of capital structure.