Factors Influencing Capital Structure Of Private Real Estate Companies

In modern corporate financial theory, the area of research on capital structure has been the focus of scholars both at home and abroad. The choice of the capital structure not only affects the cost of capital, but also has relationship with corporation’s income, financial risk, as well as corporate governance. Since the1970s, the domestic and foreign scholars have conducted extensive research on the factors that affect the capital structure of listed companies, but most of the studies are for all listed companies in a securities market. This thesis choose private listed real estate companies in China as the research object,then study the relevant factors which may impact the capital structure of these companies.First of all, this thesis defines the concept of capital structure, introduces the Western main theory of capital structure and empirical studies of factors influencing capital structure at home and abroad; then analyzes the present status of capital structure of the private real estate companies and the factors which may affect it. Based on the2009to2011year financial data that is collected from A-share private real estate listed companies, the thesis studies the influence factors of capital structure by using multiple regression method. After empirical research, a conclusion could be drawn as follow, scale, profitability and grow ability are positively related to capital structure; non-debt tax shield, ownership structure and short-term solvency are negatively related to capital structure; and income tax, the value of asset-backed and institutional environment have no significant relation to capital structure. Finally, according to the quality status and empirical results, this thesis gives some suggestions on optimizing the capital structure of private real estate listed companies which from both the company itself and the policy perspectives.