Research On Relational Transactions In Real Estate Enterprises In China: Empirical Evidence From Shanghai And Shenzhen

The word “Guanxi” is a product with Chinese characteristics extremely,and also a high frequency word in our daily lives. Although we can also see a lot of words which mean“Guanxi”in english,such as “relationship”?“connect”?“network”and so on,but this “Guanxi” is not that “relationship”.In China,the connotation of “Guanxi” is so rich that any western english words above cannot express its connotation accurately and fully.Therefore,when mention it,the scholars usually directly use the word “Guanxi” to express its meaning.As mentioned above,the connotation of “Guanxi” is so rich,whether there exist “Guanxi” transactions in the real estate industry which is a pillar industry of our national economy or not? If there exist this kind of transaction,what are the characteristics of it? In the severe market environment,compared with the market transaction pattern,what the utility of it if the real estate companies choose this kind of transaction pattern?If it can make the real estate enterprises reduce their transaction costs?The new institutional economics take the point that the choice of trading pattern was born in the corresponding institutional environment.Therefore,in order to explore the above questions,this paper firstly summarizes the relevant theories of institutional economics and mainly analysizes the transaction costs theory of the institutional economics,and analysizes the special system environment of our country meanwhile,and then puts forward the research hypothesis combined with above questions.Based on this,this paper use the panel data of 134 real estate enterprises in Shanghai and Shenzhen stock exchanges during 2007—2014,and build the econometrics model to test the hypothesis.The empirical research shows that:1?There exist“Guanxi”transactions in the real estate enterprises of our country indeed, and overall, the real estate enterprises depend more on suppliers thancustomers.2?The marketization process of different areas in our country is very unequal,the real estate enterprises in different areas with different marketing degree,in the process of social exchange, the dependence of “ Guanxi ” transactions are also different.Specifically,the lower the degree of marketization,the higher real estate enterprises reliance on the “Guanxi”transactions.3?Under the highly imperfect social credit system environment, the higher the degree of trust between enterprises,the more the real estate enterprises depend on“Guanxi”transactions.4?From the perspective of the financial characteristics of real estate enterprises,the lower growth of the real estate business,the higher debt ratio of the real estate business, the smaller scale of the real estate business, the greater degree of dependence on“Guanxi”transactions.5?The real estate enterprises can reduce some kind of transaction costs when they select“Guanxi”trading pattern.For example,it can reduce the direct transaction costs,such as costs of sales;and can reduce the indirect transaction costs,such as commercial credit costs.