Efficiency Evaluation on the Equity Financing of Chinese Real Estate Listed Companies Based on the Dynamic DEA Method

As a typical capital-intensive industry, real estate enterprises must keep plenty of cash flow. In recent years, the real estate market has constantly stimulated Chinese listed real estate companies to finance massively. As an important way of financing real estate enterprises, equity financing determined the overall financing situation of the real estate companies to a large degree. This paper employed a dynamic data envelopment analysis method (DEA) to evaluate the equity financing efficiency of the listed real estate companies from 2008 to 2009. The empirical results showed that:(1)the overall efficiency of equity financing of Chinese real estate listed companies was relatively low; (2) the phenomenon of excess input was ubiquitous; and (3) the companies with a high proportion of tradable shares were more likely to be DEA effective. Finally, this paper provided measures to increase efficiency of equity financing of Chinese real estate listed companies.