Study On The Dynamic Adjustment Of Capital Structure For A Real Estate Listed Company With A Diversified Management Perspective

As a strategic choice, Diversification has been an effective way t to expand production scale,diversify operating risks and avoid excessive competition.Since the implementation of strictcontrol policies at this stage of the real estate industry, lit will be lead to increasingly fiercecompetition in the real estate market.To face the changes of the environment of the industry,some real estate companies try to start a diversified business.In fact,when the enterprise goes intoa new field,corresponding assets investment is inevitable.It requests the enterprise pays attentionto corresponding financing decision which will affect the adjustment of enterprise’s capitalstructure.Along with the current trends of the depth adjustment about the real estate industry, Thereal estate listed companies diversified phenomenon will become more and more common inChina,So how about the overall state of the real estate listed companies in China’s diversifiedbusiness?What are the specific impact of the adjustments to the capital structure of listed realestate companies?And there’s little empirical analysis of domestic scholars in this regard. How todescribeAdjust abstract diversification strategy and capital structure with a quantitativemethod,The original intention of this study is to explain the capital structure of the enterprisefrom a strategic perspective.First, This paper introduces the basic theory of diversification and capital structure, aswell as diversified business motivation of real estate enterprises;establish the capital structuredynamic adjustment model which will consider the degree of diversification, and define themodel variables;The study sample is then listed real estate companies in Shanghai and Shenzhenstock,With2006~2011year data for the window,Study listed real estate company diversifiedbusiness strategy on capital structure;And to find ways and means to optimize the capitalstructure of listed real estate companies, and provide recommendations for the management oflisted companies.