A Study On Politically Connected,production Factors Acquisition And The Value Of Listed Real Estate Enterprises In China

With the continuous development of reform and opening-up,China's economy has made remarkable achievements.However,China is still in the deep water of reform and opening-up,the government still holds many important resources to exert influence on enterprise production and operation.Cultivating a good "relationship" with the government is vital to the survival and development of enterprises,hence,politically connected exists as an informal system.At home,the political color of enterprises has become a common phenomenon,which directly determines the development prospects of enterprises.In the past more than 10 years,the real estate industry,as one of the pillar industries of national economic development,has great impetus to the development of our economy and society.At the same time,the high price of housing has gradually become a focus of national and social issues.As we all know,the real estate industry has the capital intensity and the land resources scarcity characteristic,the capital and the land resources obtains directly influence real estate enterprise's later development,but in the transition period China,these two kinds of resources are still under the government control.Therefore,in the analysis of the impact of politically connected on the value of the enterprise,the real estate industry is a good research perspective.Compared with state-owned enterprises,private enterprises,because of the lack of natural political links,are more keen to seek political links to make up for the shortcomings of the political "birthright".Then,in China,the private real estate enterprises politically connected how to influence its corporate value and what is the mechanism of the action? As China's market-oriented reform is imperative,the government's intervention in the allocation of factor resources and influence will eventually gradually weaken,then in the current of China's real estate market constantly improve,real estate supervision strengthens continuously,real estate macro-control policy continues to deepen,the politically connected of private real estate enterprises continue to affect whether will also change? These problems are the research of this paper.Starting from the special national conditions of our country,taking the politically connected as the cut-in point,this paper takes the private real estate enterprises of China's in Shanghai and Shenzhen Stock Exchange listed A-share from 2003 to 2016 as a research sample,and further researches of private real estate enterprises in our country through the politically connected to strengthen relations with the government,thus affecting the enterprise value and the resource acquisition of production factors.The conclusions of this paper mainly include the following points:(1)Politically connected can significantly promote the value of private real estate enterprises,especially in areas where degree of the local government intervention is more severe,which is in line with the "Support Hand" theory of the politically connected,and this "support effect" mainly from local politically connected,the central politically connected has no significant impact on it.(2)The "support effect" of politically connected on the value of private real estate enterprises mainly lies in the convenience of the private real estate enterprises in the production factor resource acquisition.That is,the politically connected has raised the advantage of the private real estate enterprises in the field of bank loan and land acquisition,and the loan effect of the politically connected to the private real estate enterprises mainly comes from its influence on the long-term loan.After further distinguishing the local politically connected and the central politically connected,it is found that only local politically connected can give full play to this resource effect,and significantly promote the convenience of private real estate enterprises to obtain the funds and land resources.Moreover,the more serious degree of the local government intervention,the better advantages of the resource effect of politically connected.(3)With the continuous development of China's real estate market,the "support effect" of the politically connected of private real estate enterprises is constantly weakening.Whether from the bank loan ability,the loan term or the land resources acquisition,the resource effect of the politically connected on the private real estate enterprises has weakened.