The Research On Capital Structure Of Listed Real Estate Companies In China

The real estate industry is one of China's pillar industries,and it has high demand for capital. The company's capital structure determines the choiceof different funds -sources, while the different funds -sources will affect the capital structure. Therefore, a reasonable capital structure is importance to company's operation. Through this analysis, in accordance with the relevant conclusions, combined with their own situation, the listed real estate companies could optimize their capital structure, which is important to the operation of the listed real estate companies.Based on the financial data, the article will use the listed real estate companies of Shenzhen Stock Exchange as analysis objects, the asset-liability ratio as indicators of the capital structure. Firstly, analysis the capital structure, debt's and equity's specific composition; Then according to the determinants of capital structure theory, using the multiple linear regressions, analysis the asset-liability ratio'impact factors of listed real estate companies.Finally, according to the impact factors of capital structure and the company's own operation situation, give some suggestions for the listed real estate companies to choose the optimized capital structure.This article analyzes the asset-liability ratio of the listed real estate companies. And according the accounts receivable/prepaymentsratio,the short/long-term loans ratio, the proportion of other payables and the long-term debt ratio to analyze the debt structure; through the proportion of tradable shares, the proportion of state-owned holding, the situation of issuing new shares and bonds in the last 3 years to analyze the equity structure.Then this article using the return on assets (ROA) as the indicator of operating performance, the total assets as the indicator of company size, the corporate interests as the indicator of the asset-backed business value,the proportion of outstanding shares and the state-holding ratio as the indicators, the asset-liability ratio of capital structure Indicators, analyze the operating performance, firm size, collateral value of assets and equity's effect on capital structure.Based on the above analysis, we could have some concludes.Firstly, the listed real estate company's capital structure is irrational. The funds-source is limited. Excessive depending on bank credit, short instancing bond, lacking other funds-sources, once the government used the tighten monetary policy, the listed real estate companies would face financial strain, it would affect company's operation. On the equity hand, companies prefer using share-transfer to issue new shares, and because of the non-tradable shares and the state-owned holding, the principal– agent problem would take place more.ROA is negatively correlated with the asset-liability ratio, so we can reduce asset-liability ratio by improving business performance; the total assets is correlated with the asset-liability ratio, the corporate interests is negatively correlated with the asset-liability ratio, but the company size and the asset-backed business value have no affect on the asset-liability ratio; the tradable shares is correlated with the asset-liability ratio, the state-owned holding is negatively correlated with the asset-liability ratio, so we can reduce asset-liability ratio by improving the proportion of tradable shares, reducing the proportion of state-owned holding.At the last, we give some corresponding suggestions. For the listed companies: improve business performance, reduce asset-liability ratio; Select a wide range of funding sources, optimization of the debt structure; deepen the state-owned assets management system, reducing the proportion of state-controlled. Meanwhile, to improve the financial market we suggest that: improve the operation mechanism of the internal system of bank loans; develop the bond market; improve the fund investment's laws and regulations; develop the real estate trust market.