Research On The Influence Of Enterprise Groups On Real Estate Company

When the real estate industry become a pillar industry of the national economy,its development has attracted more and more attention.In this paper,the real estate enterprises are divided into two categories from the perspective of whether or not they are attached to the enterprise group,and select COFCO Property as the representative of the real estate listed company that attached to enterprise group and Gemdale as the representative of independent real estate listed companies.Because of the special status of the real estate in the national economy,its development is greatly affected by the macroeconomic policies.When the real estate industry experienced a market downturn and needed large amounts of money,however monetary policy or regulatory reasons for banks make it hard to meet their financing needs.This paper starts from this phenomenon and through the form of case study to investigate that compared to Gemdale,when COFCO Property faces the financing constraints,the financing convenience from the internal capital market of its enterprise group act on its operations.Through the comparison of COFCO Property and Gemdale,we found that attached to the enterprise group can indeed bring convenience to the financing of real estate company,especially in the tight external financing environment.At the same time,because of the easy access to large cheap money,dependent company in the use of funds do not pay too much attention to investment income,but tend to invest for the future development of the company profitable project.However,the frequent operation of the internal capital market funds also bring greater financial costs.Therefore,for real estate company,it is a double-edged sword to attach itself to enterprise group.