The Impact Of Financial Regulation On Capital Structure Of The Listed Company In Real Estate Industry And The Countermeasure

The real estate industry enters a high speed development period along with the exaltation of living level per person. The real estate listed company is the leader of the whole real estate profession development is the assurance that the estate profession develops healthily. But the real estate industry appears non-periodic prosperity: irrational high price, overheated investment and so on. Real estate companies themselves have appeared in various aspects of issues such as capital structure is irrational, single investment, lack of rational analysis and so on. For these reasons, the government takes a series of macro-control policies.Event-Study Method is widely used in corporate field to study the impact of event on stock price. Nowadays the method is more and more frequently applied in the field of industrial economy. In this paper, we follow the extant literature and employ two multivariate regression models, estimated by seemingly unrelated regression method, in order to examine the short-term economic impact of financial regulation policies on real estate industry.Considering the econometric results and the present condition of real estate industry, the paper gives proposal as follows: the real estate industry should perfect monetary system as soon as possible and adopt the Real Estate Investment Trusts, to satisfy the capital demand of real estate developers as well as the investment and consumption demand of investors. In this way the real estate industry would enjoy a healthy prosperity.