The Research On The Relationship Between Housing Price Fluctuation And Enterprise Debt Financing Cost

This paper studies the impact of housing price on the financing cost of corporate debt,using from 2004 to 2016 A-share listed companies listed on the Shanghai stock exchange as the research object,using the financial expense/total period expenses to define the cost of corporate debt financing,with an average sales price index for commercial business premises and house average sales price index to measure prices,in a series of control variables(enterprise scale,age,profit ability,the repayment ability,macro variables),on the basis of dynamic GMM method for regression analysis.Based on the whole samples,this paper concludes that the housing price,real estate value and the cost of corporate debt financing are negatively correlated.What's more,the article also analyzes further the relationship between house prices and the cost of corporate debt financing by the difference analysis,and draw the conclusion: east-northern area are the most affected by the influence on the cost of corporate debt financing of price fluctuations,followed by the east area,and the middle-west area is the last one;the fluctuation of housing price has a greater impact on the cost of corporate debt financing of private enterprises than state-owned business.It also has a greater impact on the cost of corporate debt financing of manufacturing enterprises than the IT enterprises.Based on the research conclusions above,this paper puts forward some specific policy suggestions.The innovation points of this paper are mainly reflected in:(1)unique perspective.The impact of housing price fluctuation on corporate investment is a hot topic,but it ignores the impact on the financing cost of enterprises.From a new perspective,this paper makes a deeper understanding of the impact of housing price fluctuations on enterprises.(2)novel research contents.The purpose of this paper is to study the effect of house price fluctuations and corporate debt financing cost,expanding the field of the analysis of the affecting factors on corporate debt financing costs,which studies the impact of housing price on the financing cost from the perspective of different regions,different enterprises and different industries.