Does The Policy Of House Purchase Restriction Reduce The Value Of Listed Real Estate Enterprises?

The State Council promulgated "the Ten","New Country Eight" from 2010 to 2011,which aimed to curb the rise of housing prices.Driven by a series of national policies,46 cities enacted House Purchase Restriction,which limit the house buyer’s condition including the quantity,the household registration and the loan proportion,etc.Based on the study of literature,there are few researches on the impact of House Purchase Restriction on enterprises,so this paper considers the influence of the policy from the perspective of real estate enterprises.Considering the 46 cities issued the policy by different time,it can not use the traditional DID model to measure the impact of the House Purchase Restriction on the enterprise value of estate.Then considering to construct a strength DID model which include a strength variable.Using the ratio that the cumulative business share of the city which enact the policy to measure the degree of influence.The empirical results show that the promulgation of the restrictions has significant negative effects for the listed real estate’s enterprise value,the larger the degree of influence,the smaller of the listed real estate enterprise value.The paper also analyse the influence mechanism of restrictions for the enterprise value of listed real estate companies,the effects of restrictions on corporate operating performance is weak,only to the enterprise’s solvency has significantly negative effect,using the data in the real estate market further verify this conclusion,proving the influence on the enterprise value is not through the approach of the company’s operating performance.Based on the empirical analysis of the stock market,we found that restrictions enacted show a significant negative effect on the stock market,stock market fluctuation,and real estate enterprises is mainly caused by investors in stock market.Therefore,one of the ways to influence the value of real estate enterprises is through the influence of investors behavior in stock market.