Study On Capital Structure Influencing Factors Of Real Estate Listed Companies In China

Capital structure theory suggests that capital structure embodies the rights and obligations of enterprise stakeholder. It largely decides the enterprise's solvency and refinancing ability. Deciding the future profitability of the enterprise .It is an important index of an enterprise's financial position. Since the 1980s, domestic and foreign economic scholars have a lot of empirical study on enterprise capital structure influence factors. Many economists found that capital structure is closely related with Industrial Classification. Yet, domestic economic scholars research the capital structure of the real estate industry is quite late, and the overall research is also insufficiently and not comprehensive. Since the beginning of the 21st century, real estate industry in China is developing very rapidly and gradually developed into a pillar industry of the national economy. Real estate industry not only affects the overall economy in our country, but also plays a pivotal role in other and relevant industry. Real estate listed companies has a very important role in the real estate industry, also has a certain representativeness. Therefore, the research of real estate listed company capital structure influencing factors can provide certain reference for understanding the real estate enterprise financing preference, maintaining the real estate industry market stability and controlling financial risks.Main work and formed the main research conclusions are as follows:(1)The writer selects real estate listed company in Shanghai and Shenzhen stock market as the research object. Analysis the present situation of the capital structure .It is concluded that the overall structure of assets is not reasonable. Current assets have a general low proportion. The proportion of inventory, accounts receivable and other non-performing assets have a greater proportion. These all impact the short-term solvency ability of real estate listed company. The proportion of debt financing is rising year by year, and mainly relies on bank loan. Then, the ownership structure is not reasonable.(2)The main factors effect on capital structure of real estate listed companies: On the one hand, the macro factors which influence on the capital structure of real estate listed company were analyzed. Macro factors include: the economic growth situation, capital market development, national macro-control policies, inflation, interest rates, and the real estate industry development cycle. On the other hand, in order to comprehensively analyzing the microscopic influence factors of the capital structure of real estate listed companies, this paper listed real estate listed companies 2007-2009 financial indicators for the empirical analysis research. The results of the study show that, The relationship between the capital structure of real estate listed companies and enterprise development capability, enterprise operation ability, non-debt tax shields, cash flow, ownership structure is not significant correlation. The capital structure and enterprise actual income tax rate, enterprise profitability, enterprise scale, asset collateral value is related a significant positive correlation.The capital structure and Short-term solvency ability of enterprise is a significant negative correlation.