The Research Of Macro-control Policies’ Impact On The Real Estate Corporation’s Capital Structure Adjustment And Investment

China’s real estate industry has entered a rapid development period from2003. In this period, the macroeconomic control has always been in changing and the real estate market also experienced dramatic fluctuation. The capital structure and investment behavior is not only a strategic problem of individual real estate enterprise, but also related to the healthy development of a country. This paper use financial data of113listed Real Estate Company from2003to2011on A stock market to measure the price bubble and study the Impact of macro-control on the capital structure and investment behavior of enterprises.Firstly, we accurately measure the price bubble of35domestic large and medium-sized cities in the period of2006---2011. The results show that there is serious prices bubble in these cities. we tested the controlling shareholder and other factors that will affect capital structure and find that the degree of concentration of control has a significant impact on financial leverage. Mild concentration of control can improve the corporate governance and the company will face better financing environment if the Controlling shareholder is the government. The size of Company, profitability, growth opportunities, dividend policy and non debt tax shield Also have significant impacts on the capital structure of listed Real Estate Company.Secondly, we test the impact of macro-control policies on the real estate listing Corporation’s capital structure adjustment. The result shows that the macro-control policies significantly affect the capital structure adjustment of the real estate listing Corporation. In response to the macro-control policy and economic environment, It is more difficult to get long-term debt financing from the bank. Real Estate Companies generally raised short-term loans, trade credit and capital accumulation fund. These adjustments have weakened the effect of regulation and control policy, but the debt risk of real estate industry significantly improved. In order to reduce the risk exposure, the banks have reduced the credit amount to the real estate industry. But the Real Estate Companies transfer the debt risk to the customer and the upstream and downstream industry.Finally, we study the impact of different sources of funds to the investment of Corporation. The results show that:In the adverse macroeconomic policies and economic environment, the expectations of real estate enterprises still remain optimistic and the real estate enterprises increase investment. But in the result of high debt rate and funds chain taut, the real estate enterprises face financial distress and financial risk. Investors have become more cautious and are not optimistic about the radical Real Estate Company. The companies with sound management style speed the turnover of capital and try to keep the financial flexibility to seize unexpectedly profitable opportunities or avoid the all kinds of crisis. The controlling shareholder and the company size will not influence the investment. Under intensive regulation and control policy, the real estate industry awareness of risk prevention is still very weak. We should pay close attention to this reality.The last section of this paper summarizes the research results, to prevent the real estate industry system risk policy suggestions were put forward from system reform legislation and the construction of legal system. At the end of the paper the further research is discussed.