The Empirical Study On The Impact Of Capital Structure To The Enterprise Value

The value of an enterprise is the goal and the premise of its existence. Since the1960s,scholars of the capital structure and the correlation between the enterprise’s values of thebusiness conducted a lot of research, confirmed the existence of a correlation between capitalstructure and corporate value, but for no particular relevance come to a unified conclusion.Firstly the research background, purpose and significance of the article systematicallyelaborated, and to read and summarize the literature at home and abroad, the sub-sectorcorrelation studies for capital structure and corporate value is of great significance. Then thetheory of capital structure of the sort, and summarized. Research related theories can bedivided into three stages: early capital structure theory, the modern theory of capital structureand other capital structure theory. Early theories of capital structure theory is prior to1958,mainly net income theory, theory of operating revenues and traditional theory, laid thefoundation for the theory of capital structure. Modern capital structure theory mainly refers toModigliani and Miller and Miller MM theoretical model, marking generate capital structuretheory. Other capital structure theories to further improve and develop the modern theory ofcapital structure, including the signaling theory, agency theory and a series of pecking ordertheory.Secondly, this paper two stock exchanges in Shenzhen and Shanghai Stock Exchangelisted real estate in the A-share listed company as a research object, using99samples of2011-2013data, the ROE, ROA through a comprehensive model enterprise value of metrics,asset-liability ratio, long-term interest-bearing debt ratio, short-term interest-bearing debt ratiowas the capital structure metrics, sales margin for the real estate business growth indicators,taking the natural logarithm of total assets on behalf of the company size modeling andanalysis. Through empirical analysis of real estate companies listed on the capital structureand corporate value, we found a positive correlation between the two, but the short-terminterest-bearing debt ratio than the asset-liability ratio has a greater impact on corporate value,and long-term debt ratio and Enterprise Value negative correlation.Finally, this paper concluded and the status of the capital structure of listed real estatecompanies empirical research, to improve the business value of real estate listed companiespropose appropriate countermeasures. Including: maintaining proper asset-liability ratio, a reasonable allocation of short-long short-term liabilities, the establishment of mechanisms fordynamic optimization of capital structure, increase corporate financing channels and ways topromote reform, improve the capital market environment.