| In recent years, the real estate industry has not only become a fundamental factor in national economic development but also become the core of China’s economic development to promote the industry. Because of the relationship between local real estate and other industries, the real estate industry led the development of metallurgy, building materials, construction, installation, and more than 50 substances in the production sector to develop, and lead to housing consumption, to promote social employment and China’s economic development. However, the development of China’s real estate industry is still young, and it has not only own characteristics, just like capital intensive, high debt, but also because the financing channels of the real estate industry is single, which is mainly comes from bank loans. This will bring great financial risk to real estate, or even bankruptcy liquidation. It is very important to optimize the capital structure to achieve business enterprise value maximization.The relationship between capital structure and corporate value had been researched at home and abroad. The study of capital structure mostly base on the debt ratio. There are different conclusions between capital structure and corporate value.Some studies come to the debt ratio is associated with the enterprise value, some studies obtained negative correlation while others concluded that the curve rather than linear relationship.It is based on a summary of past research, based on characteristics of the real estate industry, it is necessary that the parties of the debt ratio and equity structure from both consider the relationship between corporate value and, hoping to have different findings.The essay is divided into five parts.The first part of the main issues raised, background, significance, study, research methods, research framework and the lack of innovation and this was briefly. The second part, gives the capital structure, the value of the company a definition and capital structure theory in detail. Development of capital structure theory has gone through three stages, namely the traditional capital structure theory, modern capital structure theory and the new capital structure theory. This theory of phase one by one in detail, in particular, the MM in the modern capital structure theory is essential for the development of capital structure theory, MM capital structure theory of the emergence of an innovative, modern capital structure and new capital structures MM theory is reasonable and appropriate to further relax the MM assumptions of the theoretical conclusions. Various stages of this paper summarizes the development of capital theory. Finally, domestic and international capital structure and firm value of literature and summarized. Among them, the Western Capital Structure and Firm Value earlier, a typical representative of a number of studies are:Masulis, R. W, Masulis, Ronald, W (DeAngelo, H. and homsen obtained by studying their capital structure and a positive correlation between firm value. And Myers & Mujluf (1984), Titman and Wessels reached the opposite conclusion, some studies do not come significant relationships. Domestic research comparing later, Chen, single-Xin, Sheng rights, Xiaozuo Ping, Li Yi chao who team also reached the capital structure of positive and negative related to different conclusions. Overall, the current capital structure of companies Relationship between the value of no uniform conclusions.The third part of the real estate industry and real estate development status of listed companies were listed and a brief overview of the current real estate industry has become the leading industry in China’s economic development, it can promote the development of a number of other industries, the industry has the scale of investment large, high-risk, long cycle, regional strength, the industry association and more features. In recent years, the premises of a long industry is growing, the growing scale of development, real estate prices soared, subject to market and policy implications are considerable. Although the real estate business more than thirty thousand, but only more than a hundred listed, a small number of listed real estate companies, accounting for a small proportion of listed companies, but the funds listed real estate companies accounted for the scale is not a small proportion of the real estate industry, and listed companies in the industry with the characteristics of the real estate industry. Listed real estate company located in Shanghai, Beijing, Guangzhou and other places, to the main real estate development and management industry. Salient features of its capital structure as follows:assets and liabilities rate, the proportion of current liabilities, as long as a single borrower in bank debt financing, bond financing relative lack of financial risk than other industries is high; company ownership concentration is relatively high, a large shareholder holding Share ratio did not decline; real estate company’s performance is far smaller than the developed countries in the same industry, profit margins still a big gap with the developed countries, but profit margins than other industries in China is slightly higher, but China’s real estate industry is a young enterprise, there are a lot of development space.The fourth part is the empirical analysis. I used the 2007-2009 capital structure and equity capital debt ratio as a measure of the mean concentration for three years the company’s capital structure indicators to firm size (logarithm of total assets) as a control variable indicators, with the three years 2007-2009, the net average return on assets as a measure of corporate value indicators. And then use statistics, econometrics, multiple linear regression of the equation, and finally come to the capital structure on firm value debt ratio was significantly negatively related to current liabilities ratio was negatively correlated with firm value, which may have attributed to our imperfect bankruptcy system and imperfect capital markets, prompted us to shareholder equity real estate industry is not scattered, short-term bank loans as to maintain long-term development of business funding.The fifth part the author analyzes the empirical results, for the results of the capital structure of listed real estate companies in that state are better able to improve the value of the company gives some policy recommendations. Analysis from the industry to see that particular debt ratio of enterprises high, which requires China to improve the bankruptcy system, and improving the supervision of the creditors of the company and control of enterprises, establish a good security mechanism of debt service debt, the lender can not only protect the interests of the enterprise while maintaining credit rating, This is to ensure continued production and management company in the debt financing the acquisition of funds, but also forcing enterprises to strengthen management and capital structure of self-regulation section. The second high debt ratio of the real estate industry, the external capital markets due to imperfect and some policy. The business factors that turnover is too slow as companies recommended companies accelerate the pace of current assets turnover rate, especially for real estate development, we should speed up the flow of funds, and reduce current liabilities ratio, and then optimize the capital structure. The third financing environment has seriously affected the imperfect means of financing the real estate industry and financing channels, corporate use of foreign investment capital ratio is very small, less than 5% of enterprise funds, enterprises own funds ratio of less than 30%, while debt financing is mainly rely on bank loans, banks became the provider of enterprise funds. Business development ideas should be adjusted, can not blindly pursue to maximize the scale of investment, to strengthen the internal accumulation and improve the company’s own capital ratios, the appropriate introduction of foreign capital. States should relax the conditions for enterprises to issue bonds, corporate debt funds to more than one channel, enterprises should actively seek ways to issue bonds to obtain the necessary funds, usually, a longer period bonds, and the relatively large amount of financing, decentralized the risk of debt investors, the fund is suitable for long-term investment, ease pressure on corporate short-term debt. The fourth of the real estate industry in the developed financial markets, the real estate industry’s need for funds not only debt and equity financing are two basic forms of equity and debt financing in the primary market, there are well-developed secondary market for securities In this market, has introduced many new - real estate finance basis, such as trust certificates, investment funds, indexed securities. Financial innovations introduced by these new financial instruments, investors will be free to purchase the property through the securitization of financial assets, the credit institutions have been focused on the real estate market risk and credit risk spread throughout the financial markets a variety of investors. We should vigorously battle diversified real estate financial markets, to diversify the risk of bank loans. Fifth assets can also enhance corporate value, but not very obvious, we should strengthen alliances to achieve economies of scale development strategy. Fifth, as China’s securities market and real estate market is still not perfect, especially in the laws and regulations, institutional development at the old and the new transition period to a number of irregularities with an opportunity to continue to support the development of the real estate industry, should increase the capital market and real estate market two-way regulation. Excessive concentration of the sixth option also affect value, and this is because companies are too focused effort, the enterprise’s production management and decision-making on major issues are the hands of a few people or a person in the hands, making decisions usually are based on safeguard the interests of a minority shareholder for the purpose of, or even to the detriment of the interests of enterprises to meet the interests of a few large shareholders, corporate management decisions are often not the best decision. We should introduce some restrictions on shareholder equity of policies and measures, such as when major issues are not a holder of a right, and the size of the shareholding is divided into different stages, at different stages to give different weights in order to reduce shareholder power, as companies make the best decision. |
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