Who is willing to destock, state-owned or non-state-owned real estate business?
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| Title | Who is willing to destock, state-owned or non-state-owned real estate business?
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| Author | Liu Bin, Huang Kun and Wang Lei |
| Organization | School of Economics and Business Administration, Chongqing University |
| Email | drliubin@263.net；huang15136618966@163.com；wanglei6943@163.com |
| Key Words | Real Estate Business; Ownership; Overproduction; Destock |
| Abstract | The irrational exuberance of the real estate market led to industrial over-investment and overstock. Based on unique institutional background of China’s transition economy, this paper investigates whether ownership will impact over-production and destocking behavior of the real estate business from the perspective of stock investment. We find that state-owned real estate companies are more likely to overproduction and less likely to destock. Further studies show that this phenomenon is more pronounced where the GDP growth is relatively poor. However, when state-owned real estate companies have more pyramid layers, the probability of overproduction behavior is decreasing and the willingness of destocking is increasing. Our findings provide policy suggestions on destocking under China’s ongoing supply-side reform. |
| Serial Number | WP1062 |
| Time | 2017-02-28 |
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