Does Commercial Real Estate Improve Firm Value? A View of Diversification based on China's Stock-market Listed Real Estate Companies
XING Li-xia;LIU Hong-xia;
This paper investigates the impact of commercial real estate investment on stock-market listed companies between 2007 and 2016. We find a statistically significant relation between diversification level and firm values,the lower the degree of diversification,the higher the value of the company. In the current market environment,companies face following dilemma,those with higher commercial real estate business accounts have a significantly lower firm values. Furthermore,state-owned enterprises have lower firm values in operating commercial real estate because of lower efficiency and innovation. This paper contributes not only to the theoretical research,also to the policy formulation of governments and the business strategy development of real estate companies.
【CateGory Index】： F299.233.42