The impact of enterprises' cross-border entry into real estate industry on their total factor productivity

Abstract

Based on the research of domestic and foreign scholars,this paper discusses the influence of non-real estate enterprises investment behavior in the real estate industry of listed companies on the total factor productivity of enterprises,and attempts to study the total factor productivity of enterprises investing in the real estate industry from the perspective of micro-enterprises investment decision.From the micro level,the cross-border investment of non-real estate enterprises in the real estate industry belongs to one of the diversification strategies of enterprises.The concept of “diversification discount” is proposed, and the degree of diversification of enterprises is negatively correlated with the value of enterprises.In fact,it is mergers and acquisitions to implement diversification that reduce the value of enterprises.It is also found that the “diversification discount” is due to the measurement error of Tobin Q.Using the flow of diversified investment to measure the diversification strategy,it is found that the diversification strategy will cause the loss of enterprise value.It is found that the unrelated diversification strategy of enterprises will expand the scale of enterprises and enhance the innovation investment of enterprises. In order to verify the impact of non-real estate enterprises' investment in the real estate industry on their total factor productivity (TFP), A simple theoretical model was first constructed to explain the mechanism of the negative impact of enterprises' investment in non-main business on their total factor productivity,and relevant hypotheses were proposed.Then,the TFP of China's A-share non-real estate listed companies was measured. In addition, the data of non-real estate enterprises investing in the real estate industry of A-share listed companies are collected manually, and the negative impact of this cross-border investment behavior of enterprises on their total factor productivity is proved by empirical research method, so as to explain the negative effect of overheating of the real estate market on the economy and the importance of macro-control to stabilize real estate prices.