Study On The Correlation Between Interest Rate And Listed Real Estate Enterprise Value

Taking panel data of the listed real estate companies of China from 2007 to 2014 as the research sample, the thesis applies the theoretical analysis and empirical analysis method to analyze the correlation between the interest rates and the value of listed real estate companies in China.Firstly, the thesis empirically researches the correlation between interest rate and enterprise value. The results show that significant negative correlation relationship exists between the interest rate and value of listed real estate companies in China, which is consistent with the result of the traditional interest rate transmission mechanism. It means that the interest rate reduces, the financing cost of enterprise reduces, then the enterprise profitability increases, and enterprise value will also be increased. When short-term interest rates reduse one percent, enterprise value improve 0.261893; When long-term interest rates reduse one percent, the enterprise value improve 0.258530.Secondly, the thesis discusses the method by which interest rates affect the value of listed real estate companies in China, through affecting corporate capital structure, interest rate will affect the enterprise value. In order to certify the intermediary role of capital structure, the first step is to empirically analyze the correlation between the capital structure and the value of listed real estate companies in China, and the empirical result shows that the higher the capital debt ratio of listed real estate enterprises in China, the higher the enterprise value. The second step is to analyze the correlation between interest rate and capital structures of listed real estate companies in China, and the empirical result shows that there is no significant correlation existing between the interest rate and capital structures of listed real estate companies in China. Finally, applying Sobel test, the thesis verifies that the intermediary role of capital structure does not exist between interest rates and corporate value, which means that the interest rate does not affect enterprise value through affecting enterprise capital structure.Finally, the thesis proposes policy suggestions based on the conclusions, which is that our government should unswervingly promote the marketization of interest rate, and truly plays the promoting role of capital market on the real economy; Real estate enterprises in our country should improve the financing structure, reduce their dependence on bank loans financing, innovate financing methods, and improve the financing structure.