An Empirical Study on the Correlation of Capital Structure and Corporate Performance-Based on the Research of Real Estate Industry

The article takes date of the listed companies in the real estate industry from 2011 to 2015 as sample date. Through performance indicators, this article makes empirical analysis and studies the relationship between capital structure and corporate performance. The results show that if the companies' operation is normal, the correlation of the capital structure and the companies' comprehensive performance is significantly positive. In addition, the correlation of capital structure and corporate performance is positive correlation, but the coefficient is low. And corporate performance has decreased year by year. These indicate that improving the capital structure to increase the comprehensive performance is close to the bottleneck. It quests for a new method to improve the performance of the companies. At present, deleverage which is the context of supply-side reform policies, is related to the capital structure of the real estate industry. Deleverage doesn't mean that the real estate industry should not borrow money or increase debt. However, deleverage refers that companies which cannot promote efficient resource allocation shouldn't improve asset -liability ratio. Therefore, deleverage ensures that funds can be more effectively used, and avoids high leverage and growth trap about surplus of production capacity.