Dissertation
Dissertation > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods

Study of the Relationship between IPO Market Timing and Capital Structure of Real Estate Companies

Author GaoChunLi
Tutor WangJianBin;LanFeng
School Xi'an University of Architecture and Technology
Course Technology Economics and Management
Keywords Real estate Listed Companies Market Timing Capital Structure Empirical research
CLC F832.51;F224
Type Master's thesis
Year 2011
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The two notifications“Administration of the further reinforcement on real estate credit business”issued by The People’s Bank of China and“Promotion of sustainable and healthy development on real estate market”by State Council in 2003 have been the important documents which affect the real estate industry in recent years,furthermore,investment expansion in 2004 and the wave of 100 billion in sales in 2005,all that result the Chain of funds and financing becoming the focus of real estate companies。Nowadays,for the tightening suppress policy of land and credit,too many barriers to listing domestic under the policy,the flexibility and lower costs of financing in market overseas make listing overseas become a new wave。For the background above all the paper aims to study the relationship between IPO market timing and capital structure based on the listed real estate companies on Hong Kong Main Board。By the summary of market timing theory from domestic and foreign scholars,based on the background of the problem in this paper,we establish the content and research methods of the study; Introduce the theory of capital structure systematicly so provides a theoretical basis for the research process;Summarize the characteristics and listing requirements of the Hong Kong Main Board,the overview summary of quantity and equity of real estate companies,systematic understanding the financing environment and their financing capacity of Hong Kong main board listed real estate companies。 Based on the model of market timing existence and persistence of impaction on capital structure proposed by Baker and Wurgler(2002),impact factors on capital structure of real estate industry home and abroad,by the modified model and the stock market data of selected real estate companies listed on Hong Kong main board,we empirically test and study the existence of the companies market timing behavior and relationship between market timing and capital structure。The results show that:First,there is a certain gap between the actual financing environment of real estate companies listed on Hong Kong main board and the traditional hypothesis, market timing does not play a significant role;Second,there is not exist short market timing influence on the Main Board of Hong Kong;Third,the historical weighted average market-to-book ratio have a negative correlation with the capital structure,and the historical weighted market-to-book ratio increased by more than one unit each,will cause the book leverage ratio dropped by 0.02 units;Fourth,the duration of influence that IPO Market timing of Hong Kong main board real estate companies on capital structure is 2 years and will disappear completely after the third year of the IPO。

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