Research On The Influence Of Ownership Structure On The Capital Cost

Since the central government implemented the new policy that made real estate more efficient,this industry has grown rapidly.And it is playing an increasing important role in the country's economy.As it is capital-intensive and has a high turnover,a great many excellent companies has chosen IPO in the capital market,then accumulate a large sum of money to drive it go forward.Thus the capital cost has been an important issue attracting increasing number of researchers.However,many researches covered all kinds of industries.And some papers have discovered that the difference about fields has a great impact on the capital cost.Furthermore,there are few papers about the relationship between equity and capital cost.Based on the data on 100 real estate companies between 2008 and 2015,this paper calculated the equity capital cost and total capital cost by the model of CAPM and WACC;on the other hand,equity structure is divided into three aspects of concentration ratio of shares,stock proportion restriction and equity nature.Combined with regression analysis,the paper reached the conclusion.The results have turned out that it does not match the previous research.For example,concentration ratio of shares can increase the capital cost;stock proportion restriction can decrease the capital cost.That the biggest shareholder who belongs to the state-owned company has a negative impact on the capital cost,but it is not noticeable.Finally according to the conclusion,this paper offers some suggestions about how to better equity structure and decrease the capital cost.