Study On The Real Estate Enterprise Capital Structure With Enterprise Value

Real estate is one of the pillar industries for the national economy, each action of the industry is closely linked with people’s daily life. Development of the real estate industry would drive the economic growth in a range of related industries, and it is also a major contributor to the national GDP. In recent years, the international financial crisis has not recede yet, the government carries out a series of macroscopic readjustment and control policies to restrain the development of real estate industry. Thus, real estate industry is facing a changing and severe external environment. At the same time, real estate industry has several features like long cycles, high capital intensity, high project risks, and so on. In a word, it must to have good internal financial structure to improve the profitability and anti-risk capability of a company, so that enterprises can operate in complex environments in an invincible position. However, the current capital structure of China’s real estate industry is not reasonable, generally characterized by high assets-liability ratio and excessive bank lending, which makes it difficult to maintain when the business were confronted with the impact of some crisis, the fading away of many small real estate companies are proved the issue. This article focus on research of the issue of capital structure and enterprise value in listed real estate companies, to identify the relationship between capital structure and enterprise value, in order to put forward countermeasures and suggestions for real estate enterprises to maintain a reasonable capital structure and to maximizing the enterprise value.In this paper, firstly, reviewed the related literature of capital structure and enterprise value, so as to find out the theoretical support for the research; Secondly, analysis the statistical data of the real estate industry, from an overall perspective to explain the present situation of capital structure and analysis the forming reason; Thirdly, filtering out of62eligible from the real estate industry listed company, utilizing company financial report data to conduct further empirical research, using combining theoretical and empirical approaches to explore the relationship between capital structure and enterprise value, so as to arrive at a more accurate, more realistic conclusions; Finally, according to the research findings, attempt to make specific suggestions and recommendations to optimize the capital structure of enterprises and enhance the value of real estate enterprises, thereby increasing the efficiency of the whole industry.