Choosing 81 listed real estate companies in Shanghai Stock Exchange and Shenzhen Stock Exchange as researching object, using 2007-2009 year financial report’s data, this paper analyzes the relationship between capital structure and corporate performance through the descriptive statistics and regression analysis to study on governance effect of capital structure of listed real estate companies. The result shows that: the capital structure of listed real estate companies has significant quadratic relation with firm performance, the capital structure has "inverted U" relationship with performance. Current capital structure has a certain positive governance effect, but there are still optimizing space. The listed real estate companies should be combined with the profitability of the company to dynamically adjust the capital structure.