An Empirical Study Of Debt Financing Structure And Corporate Value

No matter how the financial theory developed, the relevant financial theory is to grasp the corporate value. In the capital structure, debt is an important source of funding, no one company can rely solely on their own capital, rather than through debt financing will be able to meet their needs. However, China's listed companies is also the phenomenon of widespread preference for equity financing, compared that, the studies of the debt financing and debt structure are not very systematic. According to the survey, China's debt structure of listed companies is serious anomaly. So study on the internal structure of the debt is crucial. Debt structure is reasonable, can play a positive effect of debt management, otherwise, not only will cause a company's finance crisis, or even to affect the survival of the enterprise, Optimization of the structure is an urgent solution for enterprises Moreover, China has a huge banking system and development space for bond market, debt financing is an important source of funds for a listed company in fact, debt financing is significant to China's listed companies. In a variety of industries, the real estate industry related to the stability of our financial security. Since the second half of 2007, the State introduced a number of policies and measures, such as interest rate hikes and to raise the deposit reserve ratio and so on. Facing of a series of real estate related control policy adjustments, such as monetary policy, land policy, tax policy, the funding needs of real estate companies are experiencing great test; addition, China's real estate industry is a capital intensive industries, compared to other industries, there is more prominent feature sources of funding the narrow channels of funding sources, and its development funds' characteristics are invested large, long payback period, higher risk, especially the reliance on bank credit funds larger, a relatively small proportion of their own funds and equity financing. Therefore, the liability structure of them has a certain degree of representativeness. This paper is divided into four chapters, as follows:The first chapter is the Introduction section, highlighting the research background, and research significance, international research review. Systematic combing of the literature summarized, pointing out the lack of existing research and the proposed innovation points.The second chapter concentrates on the relevant concepts and theoretical basis. Define the debt financing, debt structure, concept of corporate value, and describes the relevant theoretical foundation, including the MM theory, balance theory, motivation theory, information theory and control theory of transmission.Chapter III is the empirical part, is also a core part of this article. Through the empirical analysis of econometric models to explore the relationship between debt financing on the real estate industry structure and the corporate value, this section is to set out hypotheses, sample selection, target selection, model design, descriptive statistics, regression analysis, sensitivity analysis of empirical conclusions drawn. By selecting 2000-2008 60 listed companies in 1920 data as a research sample of data, statistical analysis of variables to describe the characteristics and trends, and then the use of a regression model and quadratic regression model to empirical analysis. By the regression results we can see, assuming that one, four, five, six have been tested, assuming that the second, and three test results was not significant, did not receive the expected results, in this paper also made cause to analysis. In addition, second amendment that added a linear relationship on the aforementioned prerequisites based on each model, but also enrich the previous studies. This empirical results show that China's real estate listed companies with high asset-liability ratio; bank loans and commercial credit is the major debt financing sources of listed real estate companies, the proportion of corporate bond financing is very small; compared to long-term liabilities, current liabilities ratio is absolute. The empirical results show that:(1) In the size of the debt, small companies whose total assets less than a certain size, which asset-liability ratio and corporate value is significantly positively relationship; large companies whose total assets greater than a certain size, asset-liability ratio less than the optimal value, showed a significant positive correlation with the company value; (2) In type of structure of debt, bank loans and corporate finance rate bond financing rate was not significant with the corporate value; business credit financing rate does not meet the optimal value, which is a significant negative correlation with the corporate value; (3) In the debt term structure, when the long-term debt ratio within a certain percentage of value of the company, it has a positive effect.ChapterⅣis the research conclusion, research innovation, policy recommendations and research deficit, sum up relevant conclusions for the aforementioned study and get this innovative point, and get conclusions from the debt financing structure, and improve debt management point of view put forward to improve the management of our debt financing effects of the proposal,, vigorously develop the corporate bond market; to establish a market-based regulatory system, and further improve the bankruptcy mechanism, strengthen the legal protection of creditors, to improve corporate governance structure. Actively use the signal corporate value role to improve the capital structure, and vigorously promote the value of debt financing with the company cycle of positive interaction. Finally, expounded the lack of the research frankly.Main contribution of this paper is:(1) Combine the characteristics of the real estate industry, corporate profitability and corporate value, from three point of the enterprise, debt type and debt term contracts,using a linear regression model discuss the correlation between China's real estate debt financing structure and the corporate value, breaking from the past only focus on one point of view (in whole or in financing debt-type) to explore the value effect of debt financing; (2) Use quadratic curve model was found a linear relationship is needed to meet the above preconditions, namely, the rate of the debt financing necessary to control to some extent in order to enhance the enterprise value, enrich the predecessors conclusions, and thus better to guide the operation for debt financing of the real estate industry.