Financing Structure Affect The Investment Behavior Of Empirical Research

In recent years China's real estate industry has become one of the pillar industries which promoted the national economic growth. The relevant statistics show that, the growth of China's real estate investment was higher than that of other industries in recent years.But its financing was mainly depend on bank loans which make banking system have to face potential risks, and it also make the industry's development suffered from hidden dangers. Therefore,it's very important to study the major factors which affected the investment behavior of China's real estate enterprises to invest from the perspective of the financing structure. The research of the internal mechanism revealed how the financing structure impact the real estate business investment behavior, it is of important theoretical and practical significance for micro enterprises decision-making and the govoment's macro regulation.In this paper, the financing structure is defined as a time lag rate of the assets and liabilities and the current increment financing,and studied the affect mechanism of the financing stucture and investment behavior based on the results of theories and and it also did systematic analysis of China's real estate enterprises' financing channels and foreign enterprises' related experience. The empirical research was based on the panel data which composed of 58 listed real estate companies financial data from the year of 2003 to 2006 and use the quantified business revenue growth indicators and risk transfer motivation indicators to classify all the examples, and explore the intrisic relations of financing sturcture and investment behavior from two different dimensions of growth and investment risks Preference. The results showed that investment of China's listed real estate company was mainly affected by the constraint of liabilities financing and the high growth samples performed like over-investment, and the main affected by the exogenous financing, and futher the enterprises which have risk preference tendency was further affected by the asset liability ratio.The enterprises which grow slower showed that the rate of assets and liabilities have negative effects on their investment behavior, and the effect become more serious in the enterprised which have risk aversion tendency. According to the results of the study and based on current situation of highly depending on the channel of exogenous financing, this paper proposed the policy recommendation of construct corporate bond market and creditors governance mechanisms to promote the stable development of China's real estate industry. From the existing research,there are innovations is this paper such as follows: the topics is unique which choosed China's listed real estate companies as the samples to study the impact mechanism between the financing structure and the investment behavior.The empirical studies was based on two dimensions of the growth ability and the investment risk preferences of the previous enterprise situation and got the relative importance of specific mechanisms on various elements such as enterprise value, cash flow and asset yield which reveall the behaviour difference of listed real estate companies.The empirical research method has obvious perspective innovation and make the research more targeted. However, the empirical study of this paper has not yet considered the China's dual characteristics of the ownership structure,and proposed the further study for improvement.