Empirical analysis on influencing factors of capital structure of China's real estate listed company: evidence from Chinese listed company
Zhuo Yang1, Hong-liang Qiu2
1School of Business Administration, Zhejiang Gongshang University, Hangzhou, China
2Department of Business Administration, Tourism College of Zhejiang, Hangzhou, China
Capital, the guarantee for normal operation of an enterprise, is crucial to production. Therefore, optimizing the capital structure has been an important task in the development of enterprises. Combining with VAR model, this paper selects 7 factors, which are profitability, operation ability, the current debt servicing ability, development ability, tax, strategic position and the assets structure, so as to make an exploratory study on the capital structure of Chinese real estate industry, based on the data from June 2002 to December 2012. The study shows that the Liquid ratio and the gross profit are of great effects on the capital structure of a listed company.