A Study On The Capital Structure Of The Listed Real Estate Companies In China

Ever since the appearance of MM theory, the issue of capital structure has been a spotlight among financial professionals. Capital structure is closely related to corporate governance, growth, strategy, and firm value, how to decide the capital structure has become the "capital structure puzzles" baffling modern economists. Domestic and foreign scholars made extensive and in-depth research on capital structure, however, the research devoted to the capital structure of the real estate industry is not many. In China, real estate industry is capital-intensive, which brings practical significance to study its leverage. However, the research starts later than foreign countries and is not deep enough in the area of real estate companies'capital structure. So a study on the capital structure of the listed real estate companies will be necessary and particularly important.With the references of other articles and circumstance the real estate industry facing to, this essay use both standard and empirical analysis methods to research. This article is composed of four parts. The first part is introduction. The second part is the theoretical analysis of the influence factors of the capital structure of real estate listed companies. The third part is an empirical analysis on the effects of capital structure. The fourth part is based on the present research in the capital structure of real estate listed companies, propose optimization proposals to China's real estate capital structure of listed companies.According to research, this paper draws the conclusions as follows. Firstly, the leverage of the real estate industry in China is much higher than other industries. The capital structure of the listed real estate companies is common in the lower equity and higher liability; higher current liability and lower long term liability. Secondly, through the establishment of multivariate linear regression model, the empirical research proof that enterprise scale, profitability, the shareholding ratio and operation ability are positive correlated to debt ratio; short-term liquidity is negative correlation to debt ratio; growth, guaranty value and blame debt tax shields have no relation to debt ratio. Thirdly, according to the characters and empirical analyses, this paper gives some suggestions on optimizing the capital structure of real estate industry listed corporations, which from two aspects of the single company and our government.