Research On The Impact Of Housing Prices On The Cost Of Debt Financing For Manufacturing Enterprises

Since the reform and opening up more than 40 years ago,the socialist economy with Chinese characteristics has developed by leaps and bounds and achieved brilliant results.Manufacturing is the most basic guarantee for a country’s material life,and it is also an important manifestation of a country’s scientific and technological innovation capabilities in international competition.The strength of manufacturing is related to a country’s role in the division of labor in the global industrial chain.The manufacturing industry not only strongly stimulates the country’s economic growth,but also provides a large number of employment opportunities.Therefore,the survival and development of the manufacturing industry is of great significance to the country and individuals.However,after the country proposed the housing reform policy in1998,the real estate market entered a golden period of rapid development,and the return on investment in the real estate industry was much higher than other industries.It has played an important role,causing a large number of manufacturing enterprises to leave their main business and divert a large amount of funds to the real estate industry,which has a negative impact on the balanced development of my country’s real economy.In 2000,the sales area of commercial housing in my country was only110 million square meters.By 2020,it has grown to 1.761 billion square meters,an increase of about 15 times in 20 years.The increasing demand for real estate has led to rising housing prices in various places,further attracting more manufacturing companies to turn their funds to the real estate industry.Based on the above logic,this paper links the fluctuation of housing prices with the cost of debt financing of manufacturing enterprises,and explores the internal correlation.First,starting from the theory of information asymmetry,wealth effect theory,and signal transmission theory,from these three theories,it analyzes how house price fluctuations affect the cost of debt financing of enterprises.The second is to use the method of empirical test to quantitatively analyze the relationship between the two: firstly,the negative correlation between house prices and debt financing costs is demonstrated by benchmark regression;secondly,the scale of real estate investment is used as an intermediary variable,and it is tested that the fluctuation of house prices can affect the real estate investment of enterprises The degree of financing will affect the mortgage capacity of enterprises,and ultimately affect the cost of debt financing;thirdly,the manufacturing industry is tested for heterogeneity according to the degree of financing constraints,regions,and different characteristics of industries,and it is verified that different types of manufacturing enterprises are affected by debt financing costs The degree of influence of house price fluctuations is different;finally,the robustness of the results is proved by further testing the endogeneity problem through the instrumental variable method and the substitution variable method.At the end of the article,suggestions are put forward for both housing prices and enterprises:first,maintain a long-term housing price control mechanism and establish an early warning mechanism for housing price fluctuations;second,manufacturing enterprises should broaden financing channels and ease their own financing constraints;third,manufacturing The management of industrial enterprises focuses on the core business and the long-term stable development of the enterprise.