An Empirical Study On The Factors Affecting The Financial Leverage Of Chinese Real Estate Listed Companies

The real estate industry is a pillar industry in the national economy for a long term,and it plays an important role in every area,such as production,distribution,and consumption.As a capital-intensive industry,the real estate industry has its particularity,which is characterized by large capital demand.Therefore,for the real estate enterprise,its internal capital structure plays a vital role in the stable development of enterprise.And the level of financial leverage could reflect the capital structure.At present,most of China's real estate enterprises still maintain high debt operations,and it may lead to serious financial risks in the long term.Based on the capital structure theory and the relevant empirical analysis,this paper takes the 96 real estate listed companies as the samples to analyze the trends of financial leverage and figures out the most reasonable leverage range.And it analyzes the operational and macroeconomic impact on financial leverage from the theoretical point of view.Accordingly it puts forward assumptions and selects the variables.According to the results of the preliminary descriptive statistics,the dummy variable such as the nature of the enterprise is introduced to measure the influences.Then,the sample companies are divided by the nature to do empirical analysis separately.The results are compared with each other to point out the reasons behind the differences.Finally,this paper figures out how to stabilize financial leverage.In the second chapter,based on the capital structure theory and empirical research results at home and abroad,this paper summarizes the achievements in accordance with two dimensions such as the development process and the results.The third chapter mainly focuses on the present application of financial leverage of real estate listed companies in China.Based on the characteristics of real estate industry,the samples are taken to analyze the financial leverage,Degree of Financial Leverage,and Return on Assets.Accordingly it puts forward the best leverage range of the real estate industry.The fourth chapter mainly concludes the macroeconomic factors and the internal factors which may affect the financial leverage of the real estate industry.Then it analyzes the influence mechanism from the theoretical point of view,and puts forward the reasonable hypothesis and also the appropriate variables to pave the way for the empirical analysis of the next chapter.The fifth chapter mainly carries on the empirical regression test to the main influencing factors of the financial leverage.On the basis of descriptive statistics,the dummy variable of enterprise nature is introduced.The whole samples are analyzed at first,and then the sub-samples are analyzed according to the different nature of the enterprise.Finally,the differences of regression result are compared and analyzed.Finally,the sixth chapter is the conclusion and suggestion.It summarizes the main conclusions of this paper,and puts forward the relevant suggestions and the shortcomings of this paper.The main conclusions of this paper include:The level of financial leverage of China's real estate listed companies is rising,and the best financial leverage range is from 0.5 to 0.7.The results of the regression of the whole samples show that the size of the firm,the profitability,the value of the mortgage assets,the growth,the inflation,and the credit scale are positively related to the financial leverage,but the non-debt tax shield and the urbanization level is negatively correlated with the financial leverage,besides,it shows the nature of enterprises has a significant impact on financial leverage.The difference is that the state-owned enterprises are more affected by the macroeconomic impact,and their financial leverage is negatively correlated with the profitability.But the financial leverage of the state-owned enterprises is positively correlated with the profitability and has no significant correlation with the growth.In addition,the level of state-owned enterprise financial leverage is significantly higher than non-state enterprises.The innovation of this article has the following points:First of all,it focuses on the financial leverage of the real estate industry in the background of supply-side reform;Secondly,this paper takes the nature of the enterprise into consideration to analyze the financial leverage;Thirdly,in this paper,both of the micro-enterprise variables and macro-variables are analyzed in this paper;Finally,this paper selects the panel data to study to make the empirical results be more persuasive.