Capital Structure Adjustment And Effect Analysis Of Real Estate Enterprises Under The Background Of Financial Deleveraging

Since July 3,1998,our country has stopped housing distribution in kind and established a new system of housing distribution monetization,housing supply commercialization and socialization,this marks the real estate industry has entered a real market-oriented stage.Since then,major housing enterprises have mushroomed from all over China,including Vanke,Poly,Huaxia Happiness,Xincheng Holdings and other iconic and representative enterprises.With the development of real estate enterprises,the problems of high asset-liability ratio,insufficient internal financing power,over-reliance on debt financing,low capital pressure and low turnover rate are gradually emerging.In the United States subprime mortgage crisis of 2008,U.S.real estate companies and mortgage companies teamed up to get quick funding from subprime mortgages to boost home sales and inventory liquidity,but Fannie Mae and Freddie Mac’s shares plunged,financial institutions that held Fannie and Freddie Bonds lost large amounts of money,and the housing bubble burst,leaving more than one million Americans homeless,homeless,with scores of real estate companies and investment banks collapsing,it hit the U.S.economy hard,setting it back decades and hitting financial markets around the world.The crisis also shows that the real estate enterprise bubble infinite accumulation will lead to a serious financial crisis.So our country constantly issued for the purchase of restrictions,restrictions on real estate financial leverage and other policies to curb the accumulation of real estate bubbles.Since 2016,our country has been continuously tightening its real estate financial policy,requiring all companies in the real estate industry to meet the government’s asset-liability ratio requirements,optimize corporate governance,improve capital structure,and diversify their financing structure,to enhance the sustainable development of enterprises,market competitiveness and stability.This paper mainly studies the effect and significance of the dynamic adjustment of the capital structure of Xincheng holding company under the background of real estate financial deleveraging,and analyzes the effect of financial deleveraging on the capital structure adjustment of Xincheng Holding Company,it provides reference experience for other real estate enterprises to reduce asset-liability ratio,optimize capital structure,and enriches the research on micro-economic consequences of real estate financial deleveraging.This paper adopts the methods of literature analysis,comparative analysis,qualitative and quantitative analysis,case study,EVA analysis,event study,etc.,this paper analyzes the dynamic adjustment process of Xincheng Holding Company from three dimensions:the dynamic adjustment path,the adjustment cost and the adjustment speed,and then analyzes the capital structure changes before and after the adjustment of Xincheng Holding Company,and horizontal and other companies in the same industry comparison,expansion of research results.Finally,by analyzing Eva and capital structure adjustment events to measure financial deleveraging in the short-term and long-term respectively for the development of the company’s effectiveness.At the same time,the capital structure of new city holding in the future and other real estate enterprises to improve the capital structure of the proposal.The main conclusions of this paper are as follows:(1)financial deleveraging reduces the path dependence of dynamic capital structure adjustment on debt financing;(2)financial deleveraging has accelerated the dynamic adjustment of capital structure,while the adjustment cost of enterprises has not increased significantly;(3)short-term financial deleveraging policy,longterm reduced the economic value of enterprises and business performance.