Empirical Analysis of the Relationship Between Debt Level and Business Performance of List Companies in the A-share Real Estate Industry

Abstract

Since China's reform and opening, the real estate industry has moved towards marketization, with rapid development with the help of market opportunities and financial leverage. However, in recent years, China has continued to promote industrial structure transformation and deleveraging, and affected by the world economy, the epidemic, and other factors, the market has continued to cool, and the past development situation is no longer applicable to the present, and the change in the real estate industry is imminent. Taking the real estate enterprises listed in Shanghai and Shenzhen A-shares as the analysis object, this paper uses the data from three consecutive years from 2019 to 2021, uses the Stata data analysis tool to conduct empirical analysis, and analyzes the relationship between the debt level and business performance of enterprises in the real estate industry in different regions through descriptive statistical analysis and multiple linear regression analysis. The results show that the results vary in different regions, and there is a significant positive correlation between the operating performance and debt level of real estate enterprises in other regions, while the north, Shanghai, and Guangzhou regions do not. The state should strengthen supervision, encourage new financing channels, promote the transformation of enterprise asset structure, optimize the level of assets and liabilities, and then reduce financial risks and ensure the benign development of the market.