| The establishment of asset-liability ratio is of great importance when it comes to corporate finance. Reasonable asset-liability ratio results in rational capital structure. However, what on earth are the factors that influence the decision-making process ? How do they formulate ? All of these have attracted attention for years. In the real world, many preconditions of static tradeoff theory can not be reached, as a result of which, corporate structure changes form time to time.With the advancement of China’s urbanization process, the real estate industry is playing a more and more important role in the market economy. As a capital-intensive industry, it is important that the capital adequacy and continuity of real estate enterprises be guaranteed. Therefore, this paper discusses the the capital structure of listed domestic real estate companies, aiming to afford lessons for company operation and management.The dynamic correction of capital structure for domestic listed real estate companies is a series of continuous movement. Before discussing correction, this paper firstly made clear what factors take effect in the determination of target capital structure, and what the adjustment speed is, to which we referred as the "upstream" of the real estate companies capital structure dynamic modification. After the adjustment has been completed, or part of it has been completed, stock price of listed real estate companies may have corresponding change. This aspect of our discussion, we call it the "downstream" of the capital structure dynamic modification. The national listed real estate enterprises(classified by the CSRC) adds up to 152, with regard to the financial data of which, we carry out theoretical analysis and empirical test.In this paper, the following conclusions were drawn. First, in China’s real estate market, the capital structure correction process does face some resistance and friction. Within a single cycle, the adjustment percentage of actual asset-liability ratio relative to the target one approximates to 0.381. Other explanatory variables also reveal significant relations with the target asset-liability ratio. With comparison to value enterprises, the growth real estate enterprises are more likely to develop low levels of target asset-liability ratio; The bigger the real estate enterprises, its developed target asset-liability ratio levelwill be higher accordingly; The higher the real estate enterprises’ non-current liabilities ratio, the greater the corresponding target asset-liability ratio. After the empirical test, we found that the relative leverage premium phenomenon among domestic real estate listed companies does exist generally. |
