Empirical research on relationship between interest rate and capital structure of listed real estate companies

Author

Gao, Minfang ; Wang, Zhen ; Feng, Ai´ai

Author_Institution

Sch. of Manage., Xi´´an Polytech. Univ., Xi´´an, China

fYear

2011

fDate

8-10 Aug. 2011

Firstpage

3009

Lastpage

3012

Abstract

Taking panel data of the real estate companies listed in Shanghai and Shenzhen from 2000 to 2009 as a sample, this paper made an empirical study on relationship between interest rate and capital structure. The results show that interest rate and the debt-to-asset ratio of the listed real estate companies are negatively correlated significantly; the change of interest rate has a significant impact on the adjusting of companies´ capital structure. Chinese real estate companies should change the financing mode which depends on bank loans highly, expand channels of financing and innovate in financing to ensure the healthy development of enterprises.

Keywords

economic indicators; financial management; property market; Shanghai; Shenzhen; bank loans; capital structure; debt-to-asset ratio; financing mode; interest rate; real estate companies; Companies; Economic indicators; Educational institutions; Finance; Industries; capital structure; interest rate; real estate;

fLanguage

English

Publisher

ieee

Conference_Titel

Artificial Intelligence, Management Science and Electronic Commerce (AIMSEC), 2011 2nd International Conference on

Conference_Location

Deng Leng

Print_ISBN

978-1-4577-0535-9

Type

conf

DOI

10.1109/AIMSEC.2011.6010699

Filename

6010699