Study On The Adjustment Of Capital Structure Of COFCO Property

At the Central Finance and Economics Group meeting in November 2015,General Secretary Xi Jinping first mentioned “supply-side structural reforms”,in which deleveraging is an important task of reform.In recent years,the overall debt ratio of the real estate industry has reached 60%-80%,and its industry leverage ratio has become a consensus in the industry.It is extremely urgent to optimize the capital structure of the real estate industry.The paper addresses the issue of the capital structure of COFCO's capital structure,the financing order in the adjustment of capital structure,the timing of equity financing and the speed of optimization.Based on the review of capital structure related theories and literatures,the thesis closely combines the actual situation of COFCO Property and uses multiple regression analysis methods to study the two problems of COFCO's capital structure adjustment mode and optimization adjustment speed.The study found that the financing order of COFCO Property is to prioritize debt financing,and then carry out equity financing,and finally consider internal financing.This financing sequence is inconsistent with the theory of priority financing;COFCO Property equity financing is in line with market timing theory;1993-2017 The capital structure optimization of COFCO Property has 12 years of adjustment to the target capital structure.After 12 years of deviation adjustment,the speed of capital structure adjustment shows asymmetry.The speed of upward adjustment is lower than the speed of downward adjustment,and the overall adjustment is in line with the adjustment.The dynamic trade-off theory is consistent.Based on the research conclusions,the paper puts forward suggestions on increasing the proportion of endogenous financing,reducing the proportion of current liabilities and developing diversified financing channels.The paper tests the practical application of the three classic capital structure theory through the adjustment behavior of COFCO capital structure,provides theoretical guidance for COFCO Property to further optimize the capital structure,and provides reference for the optimization and adjustment of capital structure for other enterprises in the real estate industry.