Research On Capital Structure And Risks Of The Real Estate Companies In Our Country

This paper mainly focuses on the issues of capital structure for real estate companies in China. By taking advantage of capital structure theory and real estate finance, the paper aims to instruct capital structure management and risk management in China. There are four parts in this paper and Details are presented as following.In the first part, the paper pays attention to the purpose of research on capital structure for real estate companies, its practical value and the entire frame of the paper. The first part refers to the content in chapterl.In the second part, the paper concludes the sequence of ideas in capital structure theory and then comes up with several issues on the real situation of capital structure for real estate companies in order to propose questions that the paper wants to further. The questions include what's the regularity of capital structure for real estate companies, what factors influence the capital structure for real estate companies, what is the industrial characteristic about capital structure for real estate companies. The second part refers to the content in chapter2 and chapter 3.In the third part, the paper tries to analyze the problems mentioned above by establishing a model to show the relationship between operational features of real estate companies and capital structure for real estate companies. Firstly, we get started from the operational features of real estate companies. The products of real estate companies function as investment and consumption, the operational of real estate companies relies on the conservation of lands and advance booking on products. Furthermore, by making full use of the mathematical model, we find that the capital structure for real estate companies is related to the expected earning rate, risk (investment policies), assets liquidity, liabilities plan (operational liabilities and financial liabilities) as well as interest rate. What's more, we concentrate to research on the optimal capital structure, a dynamic capital structure in accordance with expected rate, risk, assets liquidity, liabilities plan and interest rates. The third part refers to the content in chapter 4 and chapter 5.In the last part, we come up with our solutions about these problems, which include the risk features of real estate companies, the relationship between capital structure and operational risk for the company. We utilize the regularity from the model to manage the risk disclosed in the real estate companies. That is also our target from this paper. The fourth part refers to the chapter6.Finally, the paper concludes the research outcome and raises some other questions crying out for solutions, which pave the ways for the future development of this area.