The Impact Of Rising Housing Prices On Corporate Innovation

Corporation innovation is the foundation of sustainable enterprise operation.Only by continuous innovation can an enterprise get long-term development in competition.There are many factors that affect corporation innovation and housing price is the vital one among them.Since the housing reform,housing price in China rises fast and continuously,thus in turn the real estate industry becomes the main engine in China’s economy.Soaring in housing price causes the soaring in real estate value,which affects all parts of economy,especially the innovative investment decisions of enterprises.Academia at home and abroad pay close attention to the relationship between housing price and corporation innovation,then conduct a lot of research.Firstly,this thesis sorts out the domestic and foreign research about the impact of housing price on corporation innovation,then clarifies the development status of this topic.Secondly,sort out the related theories and put forward research hypotheses.Thirdly,construct an empirical model to test the research hypothesis.Finally,summary the conclusions and policy recommendations.In the empirical part,we use the panel data of Chinese listed companies from2011 to 2020(excluding the financial,real estate and construction industries)for regression analysis;and take the interaction between the market value of the real estate held by the company and the house price index as the core explanatory variable.This thesis studies the impact of rising housing price on corporation innovation from the perspective of real estate mortgage assets.Use dependent variable substitution method,independent variable substitution method and supplementary variable method for robustness test.And construct instrumental variables to solve endogenous problems.From mortgage guarantee effects and capital redistribution effects,it further explains the reason why the rising housing price inhibits corporation innovation.Through empirical analysis,the conclusions of this article are as follows:In conclusion,rising housing price would inhibit corporation innovation.There still exists financing constraints for listed companies.And they have to rely on rely on mortgaged real estate to obtain external financing and relief financing constraints.To reduce the impact of housing price on corporation innovation,besides controlling housing price,the government also need to improve financial market to provide a good credit environment for financing.To motivate corporation innovation,in addition to increasing innovation subsidies and preferential policies,the government should also improve the property rights system and optimize the innovation environment to fully mobilize the enthusiasm of enterprises to innovate.