The Impact of Diversified Strategy on Real Estate Enterprises’ Growth
Publication: ICCREM 2021
ABSTRACT
Real estate market in China is gradually cooling down with the policy that “houses are for living, not for speculation.” Real estate enterprises have begun to transform their businesses to seek new development and form diversified businesses. But what about their performance of diversified businesses? The listed companies in real estate development industry in China’s A-share market from 2015 to 2019 are taken as samples in this paper to construct a fixed-effect panel model to study the diversified business performance of real estate enterprises. It is found that increasing the degree of diversification has negative impact on the growth and ROE of real estate enterprises, whereas one phase lag diversification can promote the growth of real estate enterprises. Practical reference for real estate enterprises is provided to implement diversified operation decisions, which is helpful to realize healthy development and reshape real estate enterprises.
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ICCREM 2021
Pages: 826 - 834
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© 2021 American Society of Civil Engineers.
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Published online: Dec 9, 2021
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