An Empirical Study On The Factors Influencing Capital Structure Of Listed Company Of Real Estate Industry In China

Since the asset structure theory arise, the research on it has never been stopped, and it has not only great theoretical value but also practical significance. In the Western developed countries many scholars have conducted a lot of studies on capital structure, theory research and experience research, but until now, there are still many problems need to be researched. Among them, the research about the influence factors of capital structure is an important aspect of the study, the capital structure effects such as the capital cost, financing decision of enterprises directly or indirectly. If we know the influence factors clearly, we can put forward to feasible measures to optimize the capital structure and help the enterprises to achieve maximum value.Since the reform and opening up, Chinese economic has developed quickly, especially in the realty business which plays an important role in the whole national economy? At the same time, the realty business is a capital-intensive industry, whether the macro economic policy, capital market, or the companies own characteristics can affect the capital structure. So studying the influence factors of the capital structure to the reality business has great significance, and it also benefit the enterprises in the reality business to optimize their capital structure.First of all, this thesis gives a brief introduction on Capital Structure Theory, providing a rationale for the follow through study. The introduction contains the present status and the main features of the real estate company among the country. Features like negative asset financing is higher than the average level, system is over conservation and easily affected by the Macro-strategy.Then follows example-analysis of the element mentioned before. The article is based on more the101Real Estate companies in Shanghai and Shenzhen stock exchange centers. Six Macro-elements and twelve Micro-elements are collected from2007-2010year financial data and2001-2010Macro economy data. After deep research on seven fundamental elements and six Macro-foundational data, a conclusion could be drawn as follow, in the microscopic perspective, solvency with capital structure, ownership structure are negatively related; scale, collateral value, growth ability and operating capacity with capital structure are positively related. In the macroscopic perspective, the inflation, loan rate and deposit reserve rate with capital structure are negatively related; likewise GDP’s growth with capital structure is positively related.The empirical results show that:In microscopic level, company should improve debt paying ability and rational allocation of assets structure, meanwhile should also pay attention to the company scale; in the macroscopic level, strengthen macro policy adjusting control and company should widen financing system and improve capital market.