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

ISER Discussion Paper from Institute of Social and Economic Research, Osaka University

Abstract: This paper studies whether (and how) corporate decisions are affected by internal factors (such as the financial conditions of own company) and external factors (such as 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 (such as profitability, liability, and liquidity) and un-booked financial indicators (political connections). Our multi-step empirical model shows that both the firm's financial conditions and her 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 to the degrees of market concentration in a nonlinear manner. Local market leaders' existence alters the small firms' strategy and leads to higher selling prices and slower selling pace in the local market. Our findings survive various robust checks.

Date: 2021-04
New Economics Papers: this item is included in nep-cfn
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://www.iser.osaka-u.ac.jp/library/dp/2021/DP1130.pdf

Related works:
Journal Article: Financial conditions, local competition, and local market leaders: The case of real estate developers (2022) 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:dpr:wpaper:1130

Access Statistics for this paper

More papers in ISER Discussion Paper from Institute of Social and Economic Research, Osaka University Contact information at EDIRC.
Bibliographic data for series maintained by Librarian ().

 
Page updated 2022-09-07
Handle: RePEc:dpr:wpaper:1130