Study On The Impact Of Real Options Of Chinese A-Share Real Estate Listed Companies On Stock Retuerns

The real estate industry is the pillar industry of China's economy.The research on the real estate industry is not only of great significance to the industry,but also of considerable value to China's economy.The value of enterprises mainly comes from the two aspects of incumbent assets and real options.Foreign countries have more research on real options,while domestic research on real options is still in the initial stage,and there is no application value for enterprises.And the real estate enterprise that is the pillar of China's economy is an industry with rich real options.It is very convenient and direct to study real options for real estate listed companies.The content of this article is divided into five parts.The first part is the introduction.Firstly,the research background and research significance are explained from the research object and the research topic,and then the research topic and research content of this paper are introduced.The second part is the literature review and hypothesis.Combining the existing theory with the problem that this paper wants to study,the three hypotheses of this paper are proposed.The third part is an empirical analysis of the relationship between asset growth(execution of real options)and stock returns.On the basis of the previous chapter,the fourth part studies the impact of real options of real estate listed companies on stock returns.Taking the inventory owned by the real estate listed company as the representative of the real option,further verify whether the relationship between the stock return rate and the volatility is driven by the real option,and whether there is a positive relationship between the real option and the stock return.This paper takes 106 A-share real estate listed companies as the research object,and the main conclusions are as follows:(1)Through group descriptive analysis and empirical test,it confirms the negative correlation between asset growth and stock returns of real estate listed companies.This phenomenon can be explained by the theory of real options.Berk,Green,Naik(1999)[7] pointed out that capital expenditure is actually that the company consumes growth options,which leads to a reduction in the risk of the company,and thus the yield is reduced.This part of empirical research shows that the implementation of real options for real estate listed companies will lead to the reduction of subsequent stock returns.(2)This paper further studies the impact of real estate enterprise real options onstock returns.It verifies the positive correlation between the income at the enterprise level and the fluctuation of income,and confirms that the positive relationship between the gains and fluctuations at the company level is due to the existence of real options.Explain that companies with more investment opportunities can effectively strengthen the positive relationship between earnings and volatility,enhance the company's value,and increase the company's stock return.Finally,this paper makes a cross-sectional regression of real options and stock returns.The results show that there is a positive correlation between real options and stock returns.The empirical conclusion further affirms the important influence of real options on stock pricing,and provides a new perspective for related research on existing asset pricing.