The Impact Of Macroeconomic Factors On The Capital Structure Of Listed Real Estate Companies

Capital structure is closely related to corporate governance, growth, strategy, and frrm value. Since 1950s, "capital structure puzzles" attracted lots of economists. They promoted a series of capital structure theory, which became a huge system about how to explain capital structure from different angles. At the same time, large numbers of empirical analysis was promoted to support these theories. At first, the research only pay attention to the factors from the company level, in 1970s the factors related to classification of industry was widely researched. Nearly, macroeconomic conditions' relationship with corporate capital structure has become a hotspot. After decade's years of development, China real estate industry has become a supportive industry in Chinese economy. Therefore, choose real estate industry as our research subject brings practical significance. However, research on real estate industry corporate'capital structure is not deep enough in China.This paper chooses real estate industry as research subject. On the base of analyzing the capital structure characteristic and financing channel of China real estate industry, the paper uses real estate listed companies as sample research the macroeconomic conditions'effect on corporate capital structure of real estate. It chooses Real GDP,Credit scale,Market default risk,Real interest rate and stock market yield as the agency variables of macroeconomic conditions, at the same time firm-specific variables such as company size,ROA,real tax rate and the tangible asset ratio were considered. At last 41 listed before 1996 real estate companies was chosen and panel data model was applied to do a positive analysis. Our empirical results show that the leverage of real estate listed companies is counter-cyclical, during the period of economic boom, real estate listed companies'leverage decline, however, during the period of economic downturn, real estate listed companies'leverage grow up. Credit scale doesn't affect the capital structure of real estate listed companies, so the control of credit scale couldn't change the leverage of Real Estate Company. Market default risk has significant minus impacts on real estate listed companies'leverage. Real interest rate doesn't change the debt-to-asset ratio, but it has minus impacts on the debt with interest to asset ratio. Finally, this article proposes several suggestions in order to promote capital structure of real estate industry, such as pay attention to the credit risks in real estate industry, develop the bonds'market in china which is helpful for optimizing the debt structure of real estate industry, provide more finance channel for real estate corporate.