Research On Capital Structure And Corporate Performance Of Listed Real Estate Companies

Capital structure is a research topic of great theoretical value and practical significance. Capital structure is the concentrated reflection of the enterprise stakeholders'rights and obligations, it has profound internal link with the corporate governance structure, the corporate market value and the corporate performance. Since the theorem of MM was proposed by Modigliani and Miller in 1958, a lot of researches on the issue of capital structure have been done by domestic and foreign scholars in order to solve"The Capital Structure Puzzle", however the results are different. In the recent years, the real estate has become a pillar industry of the national economy. Because the capital structure of Chinese real estate listed companies has some characters of high asset-liability ratio, single financing channel, much bank liability and so on, so it is necessary to optimize the capital structure of real estate listed companies from the view of preventing financial risks and improving corporate performance. It is of great theoretical and practical significance to study the relationship between capital structure and influence factors, capital structure and corporate performance because of the particularity of economic status and capital structure of real estate industry.In this dissertation, Chinese real estate listed companies of A share market were selected as study subject between 2007 and 2009. This dissertation broke through the limitation of simply studying the influence between capital structure and corporate characteristic, the influence between corporate performance and ownership structure, brought the variable of macro-control to implement innovation. It followed the main line of"The capital structure theory explanation - Micro determinant factors analysis of capital structure– Analysis of influence on capital structure by macro-control– Relationship analysis between capital structure and corporate performance", combined macro-control, capital structure and corporate performance, and systematically analyzedthe relationship between corporate characteristic and capital structure, macro-control and capital structure, ownership structure and corporate performance (EVA), debt structure and corporate performance (EVA) with the reasonable econometric model . The optimal direction of capital structure will be determined so that it can provide real estate listed companies with some strategies and suggestions of arranging the capital structure and improving the corporate performance. Some conclusions are drawn by the empirical study. Firstly, corporate scale, the tangibility of assets, non-debt tax shields, ROE, and ownership concentration has some significant influence on the capital structure of real estate listed companies. Secondly, macro-control policies have some significant influence on the capital structure too. However, the influence is weakening with the strength of the real estate company, the improvement of the financial market completeness, the rigid demand of residents and the psychological change in the needs of residents. Thirdly, the present ownership structure of real estate listed companies can improve the corporate performance, but it is not the best because of the seriousness of"only one big shareholder". Fourthly, debt financing of real estate listed companies can't improve the corporate performance significantly because financing channel is limited and state-owned banks as the major creditors are negative to corporate governance. Fifthly, macro-control can reduce the corporate performance because it is systemic risk for all listed companies of real estate. Finally, some suggestions of optimizing the capital structure are put forward in order to improve the corporate performance, and then the prospect research is discussed.