Empirical Study On The Relevance Of Capital Structure And Firm Value: For Chinese Real Estate Listed Companies

In order to research the relevance of capital structure and corporate value, the paper firstly explains related theories, such as asymmetric information theory, agency costs theory and ownership control, etc. The paper also reviews and sorts the forerunner's theoretical results both at home and abroad. After that, on the basis of theoretical results analysis, the paper puts forwards an index system and uses stepwise regression to analyze capital structure and firm value of real estate industry.This study is to investigate the effect which capital structure has emphasized on firm value using a panel data sample representing of 40 real estate listed companies in China during 2005-2009. Our results showed that a real estate firm's debt-to-asset ratio had a significantly negative impact on the firm's value measures, in both the accounting and market's measures; From the perspective of debt interest structure, interest-bearing debt ratio is a explanatory factor in the negative firm value; From the perspective of debt maturity, current debt ratio has a negative impact on firm value but not significantly; From the perspective of debt sources, short-term borrowing rate has a significant negative correlation with firm value; There's no significant difference between the results in regression analysis of capital structure; the effects of other constraints perform differently when regress with different measures of firm value.Finally, based on the empirical research conclusion, the paper tries to offer some arranging suggestions of optimizing capital structure of real estate companies within a current capital markets environment.