The Mechanism of Housing Market Supply-Demand Imbalance on the Financial Performance of Real Estate Firms

Abstract

In recent years, the imbalance between supply and demand in China's housing market has become increasingly significant, which has a profound impact on the financing environment and financial performance of real estate companies. This paper explores the mechanism of the housing market supply-demand imbalance on the financial performance of real estate companies, taking financing structure as the entry point, and analyzes the data of 72 A-share listed real estate companies for the period of February 2016 to November 2024 using panel regression model. It is found that: endogenous financing is significantly positively correlated with financial performance, with a correlation coefficient of 0.3395; debt financing is significantly negatively correlated with financial performance, with a correlation coefficient of -0.4273; and the correlation coefficient of equity financing is negatively correlated with financial performance at -0.5594. Heterogeneity analysis shows that the impact of financing structure on the financial performance of real estate development enterprises is more significant, and small-scale enterprises are more affected by financing structure than large-scale enterprises. Based on this, this paper puts forward countermeasure suggestions in four aspects, namely, suppressing housing speculative demand, improving the policy of rent and sale, promoting the citizenship of rural migrant workers, and broadening the financing channels of real estate enterprises, in order to optimize the financing structure of real estate enterprises, improve financial performance, and promote the balance between supply and demand in the housing market and the healthy development of the real estate industry.