Research On The Impact Of The Cross-regional Development Of Chinese Real Estate Enterprises On Performance

With the rapid development of economy and the continuous progress of urbanization,China's real estate industry is developing rapidly,meanwhile,the real estate market is becoming more and more mature.Because the real estate industry has obvious regional characteristics,it will limit its further expansion if the enterprise just conducts business activities in a single region,however,with the improvement of the relevant system in our country,regional barriers are increasingly broken,more and more real estate enterprises take the cross-regional development strategy as the breakthrough point for further development.By 2016,more than 80% of China's listed property enterprises in Shanghai and Shenzhen have been developed in different places.But,the results of the cross-regional development of real estate enterprises are different,there are enterprises that have successfully developed into large national real estate enterprises,and also exist some enterprises that have quit for various reasons.However,even at this stage,the large real estate enterprises in our country still have the scope to continue to expand the area,and small and medium-sized real estate enterprises.At present,there are very few researches on how the cross-regional development of real estate enterprises influences its performance,this cause the enterprise lack of necessary basis when making investment decisions.Therefore,whether the real estate enterprises should carry out cross-regional development,and how the impact of trans-regional development on enterprise performance become one of the problems need to be solved urgently by academic community and enterprises.In this paper,the real estate enterprise cross-regional development how to affect enterprise performance was systematically studied.Firstly,the influence of the cross-regional development of real estate enterprises on enterprise performance isexplained by combining the theory of economies of scale,portfolio theory and internalization theory.Secondly,it investigates and analyzes the current situation of regional market and cross-regional development of China's real estate market.Thirdly,the measurement indexes of the performance impact of real estate enterprises are selected,and the panel data model is constructed accordingly.Among them,the Herfindahl-Hirschman Index is selected as a measure of the degree of cross-regional development of the enterprise.In view of firm performance measure,four indicators were chosen from both that profitability and debt-service ability—total assets return rate,operating profit rate,quick ratio and asset-liability ratio.On the basis of previous work,we selected the panel data of 51 real estate listed companies in China from 2011 to 2016,with the help of Stata and Eviews software,discussed the impact of cross-regional development degree of real estate enterprises on corporate performance through regression analysis,it draw the following conclusions: The relationship between real estate enterprises cross-regional development level and the profitability of the business is S-shaped,that is to say,along with the increase of real estate enterprise cross-regional development degree,enterprise profitability reduced first,then increased,finally reduced with the increase of the cost,meanwhile,it also influences the solvency of enterprises in the form of s-curve;In the current stage,the real estate enterprises involved in the emerging formats,such as pension real estate,tourism real estate,medical property and long tenancy apartment,will reduce corporate profitability and solvency,in the other words,the involvement of new business types will negatively affect enterprise performance;Ownership concentration negatively affects the profitability of enterprises,and it also will raise the level of corporate debt and increase the risk of debt service.Finally,some Suggestions are put forward to improve the performance of cross-regional development of real estate enterprises based on the empirical analysis and the characteristics of the real estate industry,in order to provide ideas for enterprise strategic choice and enhance cross-regional development performance during the transition period,it is expect to promote the real estate enterprises diversified and healthy development.