The Study On Capital Structure Of Listed Real Estate Companies

The theory of capital structure has been the focus of financial research in academic circles. There are a lot of theoretical and empirical researches on capital structure decision-making factors at home and abroad. In China, as one of the pillar industries, the real estate industry has absorbed a huge amount of funds through a variety of means. Under the background of financial innovation reform, a research of the capital structure of the listed real estate companies must have a positive effect to the real estate financial innovation.This thesis first analyzes the average capital structure of China’s real estate industry. Founding that though the asset-liability ratio and asset-liability ratio without deposit receivable is always at a high level, it remained stable in the last 10 years. In contrast, the two indicators of capital structure of listed real estate enterprises has showed a significant upward trend, but the main cause is the expansion of deposit receivable. Considering the pre-sale permit system of our country, we cannot get to the conclusion that the risk our listed real estate companies faces is enlarging. But the net debt ratio and liabilities with interests ration is also increasing, which means the growth of the owners’equity is insufficient. On this basis, this thesis chooses the annual report data of 2009-2012 of 27 listed real estate companies as sample to build a model, which studies the determining factors of capital structure decision and does empirical research on factors that determines the capital structure of Chinese listed real estate companies. Research shows:1.Enthusiasm of buying land would increase the debt ratio, but a high enthusiasm of buying land hasn’t a significant plus impact on capital structure.2. Construction scale has a positive impact with the capital structure. 3. The growth of profit has a significant minus impact to the capital structure while the sales scale has a significant plus impact.Finally, based on the analysis of various types of equity financing, the thesis puts forward some corresponding suggestions according to the determinants of capital structure of real estate industry:the government should promote the development of the real estate investment funds, enterprises should pay more attention to the net profit growth, and the banks should pay more attention to the risk of real estate industry.