| Since the birth of the MM Theory in 1958, the subject of capital structure has received comprehensive discussion and researches. And many theories of capital structure were formed. For examples, balance model, agent model, and signal model and so on. These theories provide a theoretical framework for us to analyze the capital structure of Real Estate corporations in China. In addition, the researches of many domestic and foreign scholars show that there are significant differences between the capital structure of different countries and different industries, so studying concrete industry is very necessary. Since 1998, with the continuous progress of housing reform, Chinese real estate industry developed rapidly. And it gradually became the pillar industry of the national economy, its contribution to national economy was gradually grew. It not only affected overall economic performance, but also played a decisive role on other related industries. Therefore, this paper takes the listed Real Estate corporations in China as the main research objects, and analyzes the factors which affect the capital structure.This paper is divided into six parts. The first part introduces the research background, purpose and significance, and reviews and comments the previous researches from domestic and foreign scholars. The second part introduces the basic theories of capital structure, and analyzes the applicability in china. The third part introduces the concept of real estate and the particularity of the real estate industry, and summarizes the characteristics of capital structure of listed Real Estate corporations in China based on the analysis of the status. The forth part is the key part of the paper. Above all, this part conducts a comprehensive theoretical analysis of the factors which affects the capital structure of listed real estate corporation. Then, this part establishes a model and applies multi-factor linear regression. The empirical study shows that profit earning capacity has significantly positive correlation to capital structure, that short-term liquidity and operating capacity is negative correlation to capital structure, that corporate scale, growth, and hypothec value have no correlation to capital structure. The fifth part gives some suggestions on optimizing the capital structure of listed Real Estate corporations based on the results of the empirical study, which from two aspects of the single enterprise and our government. The last part is the summary of the paper. This part includes the conclusions, the defects, and the prospects for future research. |
