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) 
Working Paper: Financial Conditions, Local Competition, and Local Market Leaders: The Case of Real Estate Developers (2021) 
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 ().