Effect of Debt Structure of Real Estate Listed Companies on Over Investment in China

Abstract

In order to solve the problem of over-investment in the real estate industry, we took the public listed companies in the real estate sector as a sample to to study how their liability source structure and term structure affect the over-investment. By empirical research method, we found that 33.54% of real estate companies had excessive investment, Commercial credit and short-term debt of these companies can actually limit investment, while long-term debt and bank loans cannot play a role in curbing investment.