IDEAS home Printed from https://ideas.repec.org/a/eme/cfripp/cfri-03-2018-0026.html
   My bibliography  Save this article

Housing price and enterprise financing: does mortgage effect exist?

Author

Listed:
  • Shujing Li
  • Nan Gao

Abstract

Purpose - The purpose of this paper is to explore the influence of the rise in housing prices on enterprise financing and also the sustainability and heterogeneity of this effect. Design/methodology/approach - Empirical test, panel data, fixed-effect model, IV and 2SLS were used in this paper. Findings - The empirical results indicate that the mortgage effect does exist, and the authors further analyze the heterogeneity of this effect by dividing the sample based on the degree of financial development and property rights; the empirical results reveal that the mortgage effect is significantly higher in places with the high level of financial development. Besides, compared to the SOE enterprise, the mortgage effect has more influence on non-SOE companies. Research limitations/implications - The results indicate that the mortgage effect should be considered when regulating housing market, and in order to improve the financing capability of company, its profitability and financial market efficiency should be emphasized. Originality/value - This paper not only confirms the existence of the mortgage effect, but also explores its sustainability and heterogeneity, which reveals the risk and bubble in the effect of house market on enterprise financing, and enlightens how to promote financing ability of company.

Suggested Citation

  • Shujing Li & Nan Gao, 2018. "Housing price and enterprise financing: does mortgage effect exist?," China Finance Review International, Emerald Group Publishing Limited, vol. 9(1), pages 137-152, December.
    • Handle: RePEc:eme:cfripp:cfri-03-2018-0026
    DOI: 10.1108/CFRI-03-2018-0026
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/CFRI-03-2018-0026/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/CFRI-03-2018-0026/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/CFRI-03-2018-0026?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fahim Ullah & Samad M. E. Sepasgozar, 2020. "Key Factors Influencing Purchase or Rent Decisions in Smart Real Estate Investments: A System Dynamics Approach Using Online Forum Thread Data," Sustainability, MDPI, vol. 12(11), pages 1-36, May.
    2. Xie, Xin & Zhang, Wenjie, 2023. "Impacts of CSR on the efficiency of Chinese enterprises' Outward FDI," Finance Research Letters, Elsevier, vol. 57(C).
    3. Xiang, Junyi & Liu, Chenhao & Li, Yiming, 2021. "The impact of household real estate and self-employment: Evidence from China," Economic Modelling, Elsevier, vol. 94(C), pages 873-884.
    4. Eva Horvatova, 2020. "Twenty Years of Mortgage Banking in Slovakia," IJFS, MDPI, vol. 8(3), pages 1-30, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:cfripp:cfri-03-2018-0026. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.