Listed Real Estate Companies, Capital Structure Optimization

Safe and rational capital Structure is the basic guarantee for survival and the development of enterprise. It is also the key for enterprise to maintain competition as well as to realize its value maximization , therefore ,It is significant to analysis and research the capital structure. The real estate industry is one of pillar for our country, It promotes the development of several related industrial, and enlarges the job ,it has positive role for others as well. At present, the number of our Property development Enterprise is numerous, but the scale for many of them are limited, as an intensive capital industry of the real estate, Its debt-to-asset ratio is higher than others. therefore the fund has been the important effects for its survival and development .Under current economic situation, the real estate enterprise's capital structure exists many problems, such as the proportion of Equity financing is lower than debt financing, the proportion of short-term debt is higher than the long-term debt, the enterprise relies on the bank loan excessively, the enterprise capital structure is not reasonable, the financing channels is relatively unitary, these problems can cause crisis for Enterprise's development. With these capital structure, many enterprises will lack ability to resist the market risk, when our country tight the money, the capital chain will be tight, it will influence the enterprise's long-term development seriously. In fact , numbers of corporation bankrupt because of the broken for the capital chain .Therefore, chooses the reasonable debt scale, determines the reasonable capital structure is very important. In this article we will research the problem deeply in present situation. Because the real estate listed company has the representation extremely in the numerous enterprise, we can believed that through the capital structure's research for Listed enterprise, we will have capital structure's optimization mentality ,especially for the real estate enterprise.Based on capital structure and theoretical analysis of optimal capital structure, this paper gives an in-depth study to the status quo, existing issues and optimization of capital structure of listed companies in real estate. First of all, this article analyzes present situation of capital structure of listed companies in real estate, and find some wrong items in the capital structure of listed companies in real estate , which is helpful for optimization of the capital structure; Secondly, selecting financial samples of firms concerned, I use factor analysis and multiple linear regression analysis to make an analysis of the determinants of capital structure , which is to provide a basis for optimizing the capital structure. Last section in this paper analyzes ways and specific manners to optimize the capital structure, and give suggestions for new model for financing, to broaden the financing channels, optimize financing structure and make asset-liability ratio be in a reasonable range. This paper makes great contributions and implications to analysis of the capital structure of listed companies in real estate, and development of real estate industry in China.