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

Nowadays, with the continuous advance of housing reform, the accelerated pace of urbanization process and the sustained rapid economic growth, the real estate industry is increasingly becoming a pillar industry of national economy. Healthy and orderly development of the real estate industry has also become one of the important grantee for national economic development and social progress. Recently, there are still many problems in the real estate industry, such as the inflated housing prices, overheated investment, and irrational exuberance. These problems exposed that the investment channel of the real estate industry is single, capital structure is not reasonable, the real estate industry does not develop rationally, and so on. In order to ensure a healthy and stable development of the real estate industry, and meet the residents’housing demand, Chinese government has introduced a series of financial regulations.To study the short-term impact of this series of financial regulation on the capital structure of listed real estate companies, this paper uses the Event-study method, builds analysis model of factors influencing capital structure model, analysis the impact of the financial control policies on the real estate industry, through hypothesis testing short-term. First, this paper analyzes the real estate industry’s capital structure characteristics of Shanghai market and Shenzhen market. Latter, based on Event-Study Method, study the impact of the financial control policies on the real estate company’s capital structure in Shanghai and Shenzhen.Draw conclusions on the basis of empirical analysis. This paper says that improving the quality of the real estate capital structure needs the effort from the government and the real estate industry itself. To ensure the healthy and stable development of the real estate industry, we should broaden the investment channels for investors, innovative real estate financial products, monitor the operation of the real estate industry, and so on.