Actual Tax Burden Based On The Financing Constraints Impact On Capital Structure-empirical Evidence From Listed Real Estate Companies

Research on the capital structure is an important subject of corporate finance, the company’s value and performance are closely related to the capital structure of the company, the two complement each other. In recent years, many scholars at home and abroad have studied the factors affecting the capital structure from different aspects. Academics have also studied the impact of China’s tax policy and tax changes on capital structure. Meanwhile, the choice of capital structure is different in each industry. Real estate is an important pillar industry in China. It is a typical capital-intensive industry and needs large amounts of financing. In an environment of Government macro-control, the ability of financing are important constraints to its development. It determines the capital structure has obvious characteristics and also greatly influenced by company-level. This will be explored in the context how the actual tax burden impacts on real estate capital structure under the background of financing constraints.Firstly, China’s current situation of the capital structure of listed companies in real estate was analyzed in detail. It is found that real estate listing company’s debt ratio is high, long-term debt accounted for relatively small and debt financing is much larger than equity financing. Also,the actual tax burden is greater than the statutory tax rate. This paper selects 392 samples from real estate companies between 2008 and 2014 for empirical research. After empirical research, it is found that the actual tax burden is positively correlated with the capital structure which is in line with the classical theory of capital structure. At different degrees of financial constraints, the impacts of listed real estate company’s actual tax burden on capital structure are different.If the company’s financial constraints are high, the correlation between tax and capital structure is not significantly. Otherwise, if the company’s actual financial constraints are lower,the impact of tax on capital structure is significant positive. Under low financing constraints environment, state-owned real estate companies’ actual tax and capital structure’s correlation was not significant while the actual tax burden of private listed companies and capital structure are significantly correlated. It indicates that private real estate companies use more debt tax shield. Under high financing constraints environment, the actual tax burden of state-owned enterprises and capital structural’s relationship was not significant while the actual tax burden of private enterprise and capital structure are negatively correlated. It is explained under high financing constraints, real estate companies consider less tax shield effect of debt. Finally, some suggestions from external financing environment and their own development perspectives.