Do Chinese government policies affect performance of real estate enterprises?
The Chinese central government has instituted a series of macro-economic tightening and easing policy measures on the real estate industry to stabilize the housing market in recent decades. However, our understanding of these policies and their impact on real estate firms is limited. This paper con...
| Main Authors: | , , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Vilnius Gediminas Technical University
2024-02-01
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| Series: | International Journal of Strategic Property Management |
| Subjects: | |
| Online Access: | https://bme.vgtu.lt/index.php/IJSPM/article/view/20944 |
| _version_ | 1797293703549681664 |
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| author | Lihua Zhang Yueji Xin Xili Zhang Ning Hao Lele Li Juanfeng Zhang |
| author_facet | Lihua Zhang Yueji Xin Xili Zhang Ning Hao Lele Li Juanfeng Zhang |
| author_sort | Lihua Zhang |
| collection | DOAJ |
| description |
The Chinese central government has instituted a series of macro-economic tightening and easing policy measures on the real estate industry to stabilize the housing market in recent decades. However, our understanding of these policies and their impact on real estate firms is limited. This paper constructs an index of government policies on the real estate industry by collecting national housing policies in China from 2007 to 2019. We use this index to quantify the impact of government policies on real estate enterprises’ performance, based on data from 103 real estate enterprises listed on the Chinese A-share market. Two important conclusions are drawn from the panel data regression. First, tightened real estate policies significantly lower real estate enterprises’ profitability (ROA and ROE), while increase their liquidity risk. Second, the heterogeneity analysis shows that the tightened real estate policies yield downward impact more mildly on state-owned real estate enterprises than non-state-owned enterprises.
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| first_indexed | 2024-03-07T21:18:45Z |
| format | Article |
| id | doaj.art-53b3a455e7fa4da2996555c0212acea5 |
| institution | Directory Open Access Journal |
| issn | 1648-715X 1648-9179 |
| language | English |
| last_indexed | 2024-03-07T21:18:45Z |
| publishDate | 2024-02-01 |
| publisher | Vilnius Gediminas Technical University |
| record_format | Article |
| series | International Journal of Strategic Property Management |
| spelling | doaj.art-53b3a455e7fa4da2996555c0212acea52024-02-27T16:24:20ZengVilnius Gediminas Technical UniversityInternational Journal of Strategic Property Management1648-715X1648-91792024-02-0128110.3846/ijspm.2024.20944Do Chinese government policies affect performance of real estate enterprises?Lihua Zhang0Yueji Xin1Xili Zhang2Ning Hao3Lele Li4Juanfeng Zhang5School of Management, China Academy of Housing and Real Estate, Zhejiang University of Technology, Hangzhou, ChinaSchool of Economic, Zhejiang University of Technology, Hangzhou, ChinaSchool of Management, Zhejiang University, Hangzhou, ChinaSchool of Management, China Academy of Housing and Real Estate, Zhejiang University of Technology, Hangzhou, ChinaSchool of Management, China Academy of Housing and Real Estate, Zhejiang University of Technology, Hangzhou, ChinaSchool of Management, China Academy of Housing and Real Estate, Zhejiang University of Technology, Hangzhou, China The Chinese central government has instituted a series of macro-economic tightening and easing policy measures on the real estate industry to stabilize the housing market in recent decades. However, our understanding of these policies and their impact on real estate firms is limited. This paper constructs an index of government policies on the real estate industry by collecting national housing policies in China from 2007 to 2019. We use this index to quantify the impact of government policies on real estate enterprises’ performance, based on data from 103 real estate enterprises listed on the Chinese A-share market. Two important conclusions are drawn from the panel data regression. First, tightened real estate policies significantly lower real estate enterprises’ profitability (ROA and ROE), while increase their liquidity risk. Second, the heterogeneity analysis shows that the tightened real estate policies yield downward impact more mildly on state-owned real estate enterprises than non-state-owned enterprises. https://bme.vgtu.lt/index.php/IJSPM/article/view/20944government policyreal estate enterprisenature of ownershipliquidity |
| spellingShingle | Lihua Zhang Yueji Xin Xili Zhang Ning Hao Lele Li Juanfeng Zhang Do Chinese government policies affect performance of real estate enterprises? International Journal of Strategic Property Management government policy real estate enterprise nature of ownership liquidity |
| title | Do Chinese government policies affect performance of real estate enterprises? |
| title_full | Do Chinese government policies affect performance of real estate enterprises? |
| title_fullStr | Do Chinese government policies affect performance of real estate enterprises? |
| title_full_unstemmed | Do Chinese government policies affect performance of real estate enterprises? |
| title_short | Do Chinese government policies affect performance of real estate enterprises? |
| title_sort | do chinese government policies affect performance of real estate enterprises |
| topic | government policy real estate enterprise nature of ownership liquidity |
| url | https://bme.vgtu.lt/index.php/IJSPM/article/view/20944 |
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