Research On The Impact Of Real Estate Enterprise’s Cross-regional Operation On Enterprise Performance

As one of the pillar industries of China’s national economy,the real estate industry has experienced the "golden age" of decades of rapid expansion since the reform of the urban housing system,and is gradually shifting to the "silver age" of high-quality and reasonable development.For real estate enterprises,entering the "silver age" means a new round of reshuffle in the market,and scale is an important guarantee for real estate enterprises to gain a firm foothold and even rise against the trend in the new round of reshuffle.On one hand,scale means more resources,greater political influence,and lower financing costs.On the other hand,scale helps enterprises occupy the market,increase visibility and industry recognition.In recent years,the head effect of the real estate industry has become increasingly apparent,and seeking effective scale expansion has become the operating consensus of various real estate enterprises.According to the resource-based view,heterogeneous resources are the main basis for enterprises to gain competitive advantages.Therefore,acquiring more heterogeneous resources is essential on the road of effective expansion of real estate enterprises,and cross-regional operation naturally becomes important business strategy for enterprises to obtain more heterogeneous resources.At present,cross-regional operation has become a common phenomenon in the entire real estate industry,and scholars have made many useful explorations on the relationship between cross-regional operation and enterprise performance based on different perspectives and theories.However,space is the core element of cross-regional operations,and the impact of spatial distribution differences on enterprise performance has been ignored.Constrained by the differences in business philosophy and the geographical location and geographic embeddedness,real estate enterprises will inevitably form differences in the spatial distribution of cross-regional operations.Some companies adopt a more cohesive way to conduct business layout across regions and operations,while some companies are scattered.How exactly will this spatial distribution difference affects enterprise performance and what factors can affect the relationship between them ? There is an urgent need for an article to be able to investigate this in depth,so as to provide a practical basis for the reasonable layout of different enterprises in cross-regional operations.This paper studies the impact of the degree of decentralization of real estate enterprises’ cross-regional operation on enterprise performance,and the factors that influence the relationship between them from the perspective of spatial distribution.First,this paper selected 2012-2016 Shanghai and Shenzhen A-share listed real estate enterprises as the research sample,and introduced the Gini coefficient that is often used in economic geography to characterize the difference in the distribution of point data to measure the degree of decentralization of real estate enterprises’ cross-regional operation.Then,this paper used regression method by Stata software to analyze the relationship between the degree of decentralization of real estate enterprises’ cross-regional operation and enterprise performance,as well as the moderating role of enterprise size,debt repayment ability,differences in institutional environment between headquarters location and destination,and economic environment at destination.Finally,different methods are used to carry out the robustness tests of the research results,which has strengthened the credibility of the research results.The research results in this article show that there is an inverted U-shaped relationship between the degree of decentralization of real estate enterprises’ cross-regional operation and enterprise performance.A certain degree of decentralization can improve the performance of real estate enterprises’ cross-regional operations.However,as the degree of decentralization continues to increase,the cross-regional operating performance of real estate enterprises will gradually decrease.The scale of the enterprise positively moderates the inverted U-shaped curve relationship between the degree of decentralization of real estate enterprises’ cross-regional operation and enterprise performance,making the curve steeper,therefore large-scale real estate enterprises can appropriately increase the degree of decentralization in cross-regional operations to obtain higher income.In terms of differences in institutional environment between headquarters location and destination,the relative development level of the institution positively moderates the inverted U-shaped curve relationship between the degree of decentralization of real estate enterprises’ cross-regional operation and enterprise performance,which makes the curve steeper.Therefore,real estate enterprises should preferentially enter areas with a better institutional environment when operating across regions.The economic environment at destination is positively moderating the inverted U-shaped curve relationship between the degree of decentralization of real estate enterprises’ cross-regional operation and enterprise performance,making the curve steeper.Therefore,the economic environment at destination is also a factor that real estate enterprises need to consider when choosing to enter the region.Finally,on the basis of the research conclusions,combined with the management characteristics of the real estate industry,this paper provides corresponding countermeasures and suggestions for how different real estate enterprises can conduct reasonable spatial layout in cross-region operations,which is helpful for real estate enterprises to achieve effective scale expansion through reasonable cross-regional operations and to promote the healthy and sustainable development of the real estate industry.