Research On Capital Structure Optimization Of A Real Estate Company

At the beginning of the 21 st century,China’s real estate industry ushered in the wind of rapid development,many real estate enterprises took this opportunity to continue to grow,become the industry leader and leap to the top 500 in the country,and the real estate industry has gradually become a pillar industry to promote China’s economic development.Today,the development of China’s real estate industry has matured,and it is becoming more and more in a vital strategic position at the national level.The real estate industry needs to continuously invest a lot of resources for real estate development due to its long project construction period and slow capital recovery,and it is precisely because of this that the debt ratio of China’s real estate industry has risen year after year,and the capital structure is seriously imbalanced.The problem of high debt of real estate enterprises has also received extensive attention and great attention from the state,and multiple measures to reduce leverage,broaden financing channels,and optimize the capital structure of real estate enterprises have become the main starting point for the current state to formulate real estate policies.A Real Estate Company(hereinafter referred to as Company A)is a well-known enterprise in China’s real estate industry,with a national market layout.Based on the theory of capital structure,this thesis selects the financial data of Company A from 2016 to 2021,and analyzes the capital structure of Company A in detail: firstly,the research background and significance are introduced,and the relevant literature of capital structure is systematically sorted out and the connotation and theory of capital structure are expounded,which lays the theoretical foundation for the following research;Secondly,the basic situation of Company A was analyzed as a whole,and the debt structure,equity structure and financing channels in the capital structure of Company A were compared and analyzed from the vertical perspective of the company’s data over the years and the horizontal perspective of the company and the industry,and it was found that the capital structure of Company A had problems such as unreasonable composition of liabilities,excessive concentration of equity,and single financing channels,and analyzed the causes of these problems.Thirdly,the capital structure optimization method combining static and dynamic is adopted,and the optimal capital structure optimization model and factor analysis method are used as research tools to determine the optimal capital structure range of Company A.Finally,combined with the problems and causes of the capital structure of Company A,based on the optimal capital structure range,targeted capital structure optimization measures are proposed.This thesis selects the real estate industry as the target industry,and takes the representative company A in the industry as the specific research object,aiming to optimize the company’s capital structure and help Company A achieve long-term development.In addition,many real estate enterprises continue to ferment problems such as disorderly expansion and high debt levels,and this thesis can also provide reference for other enterprises in the same industry to solve practical problems.