THE EFFECT OF DEBT AND EQUITY FINANCING ON THE PERFORMANCE OF REAL ESTATE LISTED COMPANIES IN CHINA A SHARE MARKET

Abstract

At present, China's listed real estate companies mainly rely on equity financing and bank loans to obtain external financing, which is relatively excessive, making the external financing structure and term selection unreasonable. On this basis, it is of great practical significance to study the relationship between external financing and corporate performance. This article takes A-share listed real estate companies as the research object. First, the author will summarize the research results of the impact of external financing on curatorial performance by domestic and foreign scholars, and analyze the results from the perspective of theory and impact. Then use Stata16 to do statistic analysis in order to analyze the correlation between external financing of A-share listed real estate companies. Finally, based on the analysis of this article, the author will put forward relevant recommendations for the current status of external financing of A-share listed real estate companies, hoping that these suggestions will help the real estate industry achieve healthy and sustainable development. The following conclusions are obtained through analysis: debt financing has the greatest impact on the performance of listed real estate companies; equity financing has a significant impact on the performance of listed real estate companies. Listing time has a nonsignificant impact on the performance of listed real estate companies. Based on these results, the authors suggest: 1. Reasonably use equity financing and relatively increase its proportion in corporate financing; 2. Making full use of short-term liabilities; 3. Further, improve and develop corporate governance and strengthen management skills in financing.