Research On The Influence Of Senior Executives' Financial Background On The Financing Cost Of Real Estate Enterprises

Under the background of preventing major financial risks and real estate regulation and control,the threshold for banks to put credit to real estate enterprises has been raised,and the supervision has been further tightened,which limits the credit expansion of real estate enterprises and makes financing increasingly difficult.For a capital intensive industry such as real estate,how to obtain a large amount of high-quality capital through financing has become an important content for the development of real estate enterprises.More and more real estate companies began to hire professionals with financial background as company executives.If the company employs executives with financial background,will the professional knowledge and relationship network accumulated in financial institutions make the company more advantageous in financing? If the financial background of executives affects the financing cost of real estate enterprises,will the impact be different because of the position of executives and the industry background?Based on the data of China's A-share real estate listed companies in 2008-2018,this paper takes whether the executives have the experience of financial institutions as the independent variable,takes the debt financing cost and equity financing cost as the dependent variable,controls other important variables that affect the financing cost,and empirically tests the relationship between the executives' financial background and financing cost of the listed companies in the real estate industry.The results show that:(1)the financial background of executives has a significant negative impact on the financing cost of real estate enterprises.(2)From the perspective of the types of executives,the position and industry background of executives have different effects on the financing cost of real estate enterprises.