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Housing Prices and Corporate Innovation in China

Author

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  • Wenqing Zhao
  • Bing Lu
  • Jianyu Zhang

Abstract

Based on the data of 35 major cities in China, this paper examines the impact of the rising housing prices on the innovation activities of Chinese A-share listed companies. We find that the increase in housing prices significantly inhibit the number of patent applications and the proportion of R&D expenditure of listed corporations. In addition, we further consider the ownership structure, and find that the impact of housing price on corporate innovation is more pronounced in state-owned enterprises. This paper reveals the negative impact of a booming real estate market on the real economy from the perspective of innovation in China. JEL classification numbers：E44 G31 O32Keywords: real estate markets, innovation, hosing price

Suggested Citation

  • Wenqing Zhao & Bing Lu & Jianyu Zhang, 2019. "Housing Prices and Corporate Innovation in China," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 9(3), pages 1-2.
    • Handle: RePEc:spt:apfiba:v:9:y:2019:i:3:f:9_3_2
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    References listed on IDEAS

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    More about this item

    Keywords

    real estate markets; innovation; hosing price;
    All these keywords.

    JEL classification:

    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies

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