Research On The Influence Of Real Estate Price On Corporate Risk-taking

China's real estate industry has run into a fast traffic lane of booming development since the national implementation of the housing commercialization policy in1998.The tremendous demand for housing has evidently driven the house price up,even just after the financial crisis,and which has caught the attention of the world.Real estate,as an important part of tangible assets for a family or a corporate can usually reflect the asset scale of a family or a corporate.Rising house price leads to an increase of corporate estate mortgage,and then relieves the financing constraints.Theoretically,because of risk aversion,business managers attend to put their funds obtaining through an growth of house property mortgage into other industries which are more low-risk and high-return,such as real estate industry;on the other hand,lower financing costs and larger financing scale motivate business leaders to invest in projects which are high-risk but supposed to have a positive expected return,but as a consequence this increases corporate financial risk.Real estate is increasingly valuable by reason of a surge in house price.This may has an effect on the investment and financing behaviors,as well as the risk-taking behaviors of the enterprises.In order to research the effect,this paper analyzes the data of the estate selling price and corporate house property in 35 large and medium-sized cities over the years,and then estimates annual house value.Empirical test shows that one yuan of the real estate mortgage value increase can result in 0.0021—0.0057 down of corporate risk-taking between 2003 and 2013,the rapid rise of house price has enhanced the ability of corporate financing and has affected Corporate risk-taking by real estate mortgage guarantee.Further research found that rising house price eased the corporate financing constraints and at the same time reduced the tendency of business R&D expenditure,then activate the real estate investment market.In the context of the financial crisis,corporate risk-taking behavior has become a focus of attention of the society and it not only acts on the corporate development,but also has important influence on macroeconomic.Nowadays,there are some researches mainly confined to corporate property rights and executive incentive,but few on corporate risk-taking in China.This article makes the study on the impact of the real estate value increase on corporate risk-taking using the rise of house price as a entry point.The research can be a useful reference for the government to control housing prices,and also enriches the research of corporate risk-taking.