EconPapers    
Economics at your fingertips  
 

Financial conditions, local competition, and local market leaders: The case of real estate developers

Ying Fan, Charles Leung and Zan Yang

Pacific Economic Review, 2022, vol. 27, issue 2, 131-193

Abstract: This paper studies whether (and how) corporate decisions are affected by internal factors (e.g., the financial conditions of own company) and external factors (e.g., the actions of local competitors) in an imperfectly competitive environment. We study the listed real estate developers in Beijing as a case study. Our hand‐collected dataset includes transaction‐level information booked indicators (e.g., profitability, liability, and liquidity) and unbooked financial indicators (political connections). Our multi‐step empirical model shows that both the firm's financial conditions and its competitors' counterparts are essential but play different roles in the output design, pricing, and the time‐on‐the‐market (TOM). Internal versus external factors' relative importance relates nonlinearly to the degrees of market concentration. Market leaders' existence alters the small firms' strategy and leads to higher selling prices and slower selling pace in the local market. Our comprehensive financial indicators (booked and unbooked) better predict corporate behaviors than traditional measures.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://doi.org/10.1111/1468-0106.12360

Related works:
Working Paper: Financial Conditions, Local Competition, and Local Market Leaders: The Case of Real Estate Developers (2021) Downloads
Working Paper: Financial Conditions, Local Competition, and Local Market Leaders: The Case of Real Estate Developers (2021) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:pacecr:v:27:y:2022:i:2:p:131-193

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1361-374X

Access Statistics for this article

Pacific Economic Review is currently edited by Kenneth S. Chan and Yin-wong Cheung

More articles in Pacific Economic Review from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2025-03-22
Handle: RePEc:bla:pacecr:v:27:y:2022:i:2:p:131-193