The Impact Of Real Estate Investment On Corporate Innovation Activities

Nowadays,The rapid rise in housing prices and the high rate of return on investment in real estate have attracted a large amount of capital into the real estate industry.As the main carrier of China's current real economy,a large number of enterprises are competing for investment,and many of them are non-real estate enterprises.In view of the current domestic real estate market,in addition to the higher return on real estate investment behavior of non-real estate listed companies,the illiquid assets can also obtain more loans through mortgages,even when the company faces a delisting crisis,the company's finances can be saved by selling company's property.However,excessive investment in real estate may lead to a series of distorting consequences.For example,the investment of non-real estate listed companies into the real estate industry will lead to a reduction in the investment in technological innovation,which will inhibit the innovation behavior of enterprises and slow down the productivity and technological progress.So will the behavior of enterprises investing in real estate have an impact on technological innovation investment? Is it on the quantity or quality of innovation? How does the impact works ? And is it different among various property right of companies?This study first reviews the literature on corporate investment and enterprise innovation at home and abroad,then,sorts out the technical route of researching the relationship between real estate investment and enterprise innovation,and obtains the ideas of this research.Firstly,through the Propensity Score Matching method(PSM),the control group that has never invested in real estate is matched with the treated group whose management variable is close to the group that has the investment real estate,and then obtained the two groups can be approximated as the results of their respective enterprise innovations only in the presence or absence of investment real estate by the Difference in Difference method(DID),then,The double fixed effect model is used to estimate it,and the estimation results are further tested and robust analysis is performed to verify the reliability of the empirical results.In the next chapter,the listed companies are divided into listed companies controlled by state-owned asset management institutions(SAMB),listed companies controlled by state-owned enterprises affiliated to the central government(SOECGs),listed companies controlled by state-owned enterprises affiliated to the local government(SOELGs)and listed companies controlled by private ownership to further observe the impact of different ownership of corporate investment real estate on innovation.Through the above theoretical and empirical analysis,this study draws the following conclusions:First,the real estate investment behavior of enterprises has a significant negative impact on corporate innovation.Real estate investment and three indicators used to measure enterprise innovation: the number of patent applications,the number of patents granted,and the number of patents valid are significantly negatively correlated,and the impact on the number of innovations(the number of patent applications)is slightly greater than the impact on the quality of innovations(the number of patents granted and the number of patents valid),that is,the enthusiasm of enterprises for real estate investment may cause a significant reduction in the enthusiasm of innovation.Second,enterprises with different ownership characteristics have different influences on corporate innovation.In this paper,the empirical analysis of the matching data of 2011-2016,which is the propensity score matching in this paper,finds that the investment in real estate of listed companies with private ownership has a significant negative impact on corporate innovation;For listed companies controlled by stateowned asset management institutions,their 2011-2014 data show that such companies investing in real estate also have a significant negative impact on corporate innovation,and the absolute value of the coefficient is greater than listed company controlled by private ownership,which means the investment in real estate by the holding of stateowned asset management institutions and listed companies with private property ownership will result in a decline in the innovation results of enterprises,and the innovation results of listed companies under the control of state-owned asset management institutions will fall more significantly.For listed companies controlled by state-owned enterprises directly under the central government and listed companies controlled by local state-owned enterprises,the empirical results show that the real estate investment behavior of these two types of companies has no significant impact on the innovation of enterprises,but the existence coefficient is positive,which may mean by investing in real estate to obtain high profits and mortgage loans,companies are more likely to use investment returns for corporate innovation and thus to promote them.