Study On Dynamic Adjustment Of Capital Structure Of Real Estate Listed Companies

The capital structure has been the object of the scholars' key research,and with the the researches deepening on capital structure,scholars have found that the capital structure is constantly changing with the micro factors and economic macro factors of the company.Many scholars found that capital structure is closely related to the industry classification.China's real estate industry has entered a consolidation phase,due to the nature of real estate company preference high debt management,enterprise bankruptcy cost is higher,the capital structure is not reasonable.From existing literature,the study of capital structure dynamic adjustment is mostly based on the same adjustment speed,namely under different debt levels,there is no difference between the speed of the target capital structure adjustment.However,due to the differences in the debt level,the market friction is inconsistent and the behaviors of adjustment are significantly different,that is,the adjustment costs can also be significantly different.The thesis elaborates the adjustment theory mechanism with different adjustment speeds under different levels of liabilities.The materials are selected from China's real estate companies listed on the Shanghai and Shenzhen stock markets from 2008 to 2016 to establish the panel data model.There are the dynamic adjustment model of full-sample capital structure,the speed-adjusted asymmetry model,the dynamic adjustment model and the speed of capital structure adjustment respectively under different levels of liabilities in the paper.The following conclusions are summarized:(1)The study found that the adjustment rate of real estate listed companies in China was partially adjusted,that is,the company's target capital structure was dynamically adjusted.However,due to the adjustment costs,it did not immediately adjust to the target capital structure.(2)Real estate listed companies have different asymmetries in the rate of adjustment to the target capital structure at different levels of debt: the upward adjustment of the capital structure when the liabilities are insufficient is faster than the downward adjustment when the liabilities are excessive speed.This may be the actual situation of China's real estate listed companies.when the capital structure is lower than the target value and a need for upward adjustment,then the collateral increases and it is easy for debt financing;when the debt ratio is high,the bankruptcy costs are relatively higher,and generally there is no sufficient cash flow to repay the debt at this time,and the China Securities Regulatory Commision wil not allow real estate companies to supplement liquidity through refinancing.The raised funds can only be used for real estate construction and cannot be used to repay the loan.The listed real estate companies can only reduce liabilities by transferring assets and increasing their own revenue.(3)Under different debt levels,the adjustment direction of the capital structure is different,and there are significant differences in the factors influencing the capital structure and the adjustment speed.The downward adjustment when the liabilities are excessive.And company size,growth opportunities are positively related to the capital structure.And then liquidity of assets and profitability are negatively related to the capital structure.In addition,asset tangibility,non-debt tax shields,uniqueness,real GDP growth rate are not significant of the capital structure.While the degree of deviation of target capital structure is positively related to the adjustment speed of capital structure.Moreover growth opportunities is negatively related the adjustment speed of capital structure.What's more,company size,liquidity of assets,profitability are not significant of the adjustment speed of capital structure.The upward adjustment of the capital structure when the liabilities are insufficient.And company size,asset tangibility,growth opportunities,uniqueness,real GDP growth rate are positively related to the capital structure.And then liquidity of assets,profitability,non-debt tax shield are negatively related to the capital structure.In addition,company size,asset tangibility,uniqueness,real GDP growth rate are positively related to the adjustment speed of capital structure.While the degree of deviation of target capital structure,liquidity of assets,profitability,non-debt tax shield are negatively related to the adjustment speed of capital structure.Moreover growth opportunities is not significant of the adjustment speed of capital structuret.