Research On The Investment Acts Of Real Estate Enterprises In China

The rapid increase of rate of urbanization had provided wide development space for the real estate industry since 1980, The real estate industry grows vigorously and displays the state of high-speed increase in recent years. It has already turned into the pillar industry of economic increase in our country. The research on real estate economics draws attention of academic circle. However, the history of research on real estate enterprises is comparatively short in our country, still in elementary stage. Most of the research on real estate focuses, starting from the methods of traditional investment analysis, on the investor's cost, income and risks. But the real estate industry, concerning other every industry and having big influence on state policy, regional economy, environment and culture, exists great uncertainty.In addition, with day by day intense market competition resulting from unceasing development of market economy in our country, how to utilize modern investment theory, option, game theory and information economics theory to comprehensively research the investment acts of real estate enterprises is a project with great significance about promoting the research on the investment theory of real estate and real estate enterprises. It is significant to improve the enterprises' ability of investment management and strategic investment and competition in order for enterprises to keep subsistence, development and sustainable and stable increase in the market competitive environment.Based on such background, this dissertation selects "the investment acts of real estate enterprises" as subject of research.As to its contents, firstly, on the basis of relative theory, the motive of investment and acts of decision making of real estate enterprises are researched, and the guiding principles and the starting points of investment acts definitely put forward. Secondly, the investment acts of real estate enterprises in the moving course of investment are analyzed by the methods of game theory, real option, economics and statistics, and then all respects of the investment acts of real estate enterprises are revealed, and their rationalization is declared. Finally, considering the irrational investment acts of real estate enterprises and the economic systems of China, the suggestions for normalizing the investment acts of real estate enterprises put forward.In respect of the motive and decision making of real estate enterprises, the investment motive of civilian-run enterprises on the one hand submit themselves to the general rules of enterprises, that is the investment motive is multi-factor and making profit is dominated motive of civilian-run enterprises which also tend to realize other aims, on the other they also have peculiarity, that is they are more objected to outsider factors. The investment motive of state enterprises is more concerned with government's aims. The agent's impact of decision making is very important in decision making of investment of both enterprises.In respect of the acts of financing, from the respect of asymmetric information, because of asymmetric information existing between investor and operator, real estate enterprises may invest excessively or inadequately. In order to prevent them from emerging, real estate enterprises will follow the law, first, internal financing is chosen, and then external financing, if external financing is necessary, first, debt financing is chosen, and then equity financing. From the respect of agency cost, both financing will have agency cost, but enterprises can reduce total agency cost by choosing debt covenants. From the respect of external constrains, constrains of bank financing are slack, while constrains of equity financing and other debt financing are tight. Finally, the financing law of real estate enterprises is put forward, first, internal financing is chosen, and then external financing, if external financing is necessary, bank financing is chosen.In respect of the acts of allocating and implementing investment, the acts of real estate enterprises related land are the core acts. The acts for acquiring the land and the pricing such as allocation, biding, auction, list, have their characteristics., Some reasons make real estate enterprises tend to store up land.The timing of land development is researched by way of real options. As to the structure of product, real estate enterprises tend to build the high-quality buildings. As to the development of the investment in the space, real estate enterprises tend to invest in the pattern of radiation from points. As to site selection, real estate enterprises have not many choices, site selection of commercial property and residence does not correspond to reality, and real estate enterprises tend to select the sites where the infrastructure is in good conditions. The investment acts of real estate enterprises do not harmonized with the city programme. Even though sustainable Development is very important for real estates, many reasons make the real estate unsustainable.In respect of the acts of getting back of investment, the cheating acts of real estate enterprises in the getting back course relate to the government's interests, the abilities to monitor, the bad constrain of market forces. Real estate enterprises can deliver the false demand by exploiting the human behavior. The interactions between real estate enterprises and clients are also researched from the respect of asymmetric information. The price is an important factor in getting back of investment, and price competition and price discrimination are researched. Agent is an important way for realizing the acts of getting back of investment, the principal-agent acts between real estate enterprises and agent are also researched, especially the mortal hazard. seller's credit of real estate enterprises is an act for promoting their getting back of investment, not only promoting the efficiency, but also innovating the way of financing.After analyzing the acts of real estate enterprises' impulse, making policy, financing, allocation and implementing, getting back of investment, we put forward the suggestions for normalizing the investment acts of real estate enterprises.As a whole, the main innovations of this dissertation are as follows:Firstly, the concept of impact coefficient of decision making put forward, and the impact coefficient is added to the principal-agent model. The role of impact coefficient of decision making and other important factors is illustrated. The results are that impact coefficient of decision making play an important role in determination of optimum investment of the two kinds of enterprises.Secondly, the pattern of expanding from points in the development of investment of real estate enterprises put forward, after the investment saturated in the developed regions, the enterprises increase the investment in the surrounding region of them. 2003-2006 Location Quotient is measured and calculated, which is used to researched normatively the development of investment in the distribution of region. The result is satisfactory.