China Real Estate Firms' Capital Structure Influencing Factors

Capital structure question is a research topic of important theory valuable and practice significance. Having a sixty-year evolution in the west, the study of capital structure produces such classical theories as MM Theorem which introduces agent model, signal model and pecking model. These theories provide a theoretical framework for the analysis into the capital structure of listed Real Estate corporations in China. As an important industry in the national economy, Real Estate industry's health development is the important guarantee of social progress and economic growth. Listed Real Estate corporations, characteristic of the field, offer a good chance to probe into the capital structure of Real Estate enterprises. This paper takes the listed Real Estate corporations in China as the main research objects, adopts the ways such as description stat, factor analysis and regression analysis. The present thesis intends to study those factors that determine the capital structure of listed Real Estate corporations.This paper firstly introduces the theory of capital structure. These theories provide a theoretical framework for the analysis into the capital structure of Real Estate Industry Listed Corporations in China. In order to study the determinants of Real Estate Industry Listed Corporations in China, it is necessary to understand the current situation of capital structure for listed Real Estate corporations. We found several characters of capital structure. On the basis of them, we extracted determinants of capital structure for listed Real Estate corporations. Then, using principal component analysis to locate key elements, the present writer uses a regression method to establish a decision-making model of capital structure which is able to optimize the capital structure. Lastly, according to the theory 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.According to research, this paper draws the conclusions as follows. Firstly, Analyz- ing the current situation of capital structure for listed Real Estate corporations. We know they are having the characters of Financing Creditor's Rights are rising year by year, financing rate of bond is small and stockholder's rights structure is unbalanced.Secondly, the results show that growing and company hypothecate value are positive correlated to debt ratio; short-term liquidity is negative correlation to debt ratio; corporation scale, profit earning capacity and stock structure 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.