Empirical Research On The Debt Maturity Structures Of Listed Real Estate Companies In China

The capital structure question is always a point which companies focus on, it refers to how to decide the financing structure in the real business practice. And go a step further, we can regard it as how to choose the best debt ratio and the constituent of this ratio. The traditional study of capital structure usually homogenizes all kinds of debts rather than pay attention to the specific constituent of them. However, if we can optimize the maturity structure of debt according to its length, then the effectiveness of corporate governance can be improved.The market reform in China and the direct economic intervention of government make the Chinese financing market developing differently from foreign countries. And the debt maturity structure of companies listed on China is also varies from that of western listed companies. The structures of debt of companies in different industries hold the different characteristics. Especially the real estate industry, which plays a supporting and leading role in the national economy of our country, but its debt maturity structure has so many problems that treating its future development.At here, I summarize and analyze listed real estate companies’debt maturity structures and the reasons of these, then figure out the significant influence on such structures through the positive research, and finally give some suggestions on how to improve the structures. As the study illustrated, investment opportunities and corporate performance have significant effects on debt maturity structures. Specifically, the long-term debt ratio has the negative correlation with investment opportunities, and has the U curve relationship with corporate performance. Besides, some problems effect debt maturity structures slightly, such as the single debt financing structure, the heavy dependence on short term bank loan, the constraint of the fact that the development of corporate bond is far behind that of bank credit, and some others factors like the asset debt maturity structures, free cash flow and the marginal tax rate. So the suggestions are that executives should learn the relevant policies, then make the valuable investments, actively explore the bonds, trusts and other financing channels, increase the proportion of long-term debt and improve debt protection mechanism. So that they can improve the financing structure and business performance of corporate.