Research On The Influence Of Economic Policy Uncertainty On The Merger And Acquisition Of Listed Real Estate Development Enterprises

At present,China’s real estate market is undergoing a major period of transformation and development.Since 2022,China’s real estate market has been in a downward trend.The building area and sales volume of real estate have declined precipitously,and buyers are in a strong wait-and-see mood,which brings huge risks to real estate development enterprises.As the main support of China’s economic development,the real estate industry has introduced many relevant policies to macro-control the real estate market,which also makes the real estate development enterprises face an uncertain external business environment.For real estate enterprises,economic policy uncertainty not only affects the development of real estate enterprises,but also affects the M&A decisions of real estate enterprises.For real estate development enterprises,M&A is not only an investment to expand enterprise scale and improve economic efficiency,but also a need to optimize enterprise structure and expand financing channels.Therefore,under the above background,it is of great significance to study the impact of economic policy uncertainty on mergers and acquisitions of listed real estate development enterprises.This paper takes the data of A-share listed real estate development enterprises in Shanghai and Shenzhen Stock Exchanges from 2011 to 2021 as the research object,combined with the economic policy uncertainty index released by Huang and Luk(2018),adopts the multiple regression analysis method,and starts from the three aspects of M&A willingness,M&A scale and M&A performance of listed real estate development enterprises affected by economic policy uncertainty,This paper discusses the influence of economic policy uncertainty on mergers and acquisitions of listed real estate development enterprises.At the same time,we also introduce the property right nature of enterprises as an adjusting variable to study the impact of economic policy uncertainty on the M&A of real estate development enterprises with different property rights.Considering that different economic policy uncertainties may have a heterogeneous impact on mergers and acquisitions of enterprises,this paper studies the impact of different types of economic policy uncertainties on mergers and acquisitions of listed real estate development enterprises from four aspects: fiscal policy uncertainty,monetary policy uncertainty,trade policy uncertainty and exchange rate and capital control policy uncertainty.Finally,according to the empirical analysis results of this paper,the countermeasures to reduce the impact of economic policy uncertainty on the mergers and acquisitions of listed real estate development enterprises are proposed.The research shows that the uncertainty of economic policy has a restraining effect on the M&A willingness of listed real estate development enterprises,and the M&A scale of real estate development enterprises has a significant negative correlation with the uncertainty of economic policy;Compared with non-state-owned real estate development enterprises,the mergers and acquisitions of state-owned real estate development enterprises are less affected by the uncertainty of economic policies;The uncertainty of economic policy has a significant negative correlation with the M&A performance of real estate development enterprises,and has a greater impact on non-state enterprises;The uncertainty of fiscal policy has a large negative impact on the willingness and scale of mergers and acquisitions of listed real estate development enterprises,while the uncertainty of monetary policy and trade policy also has a negative correlation with it,but the impact is small.The uncertainty of exchange rate and capital control policy has a positive and significant relationship with the mergers and acquisitions of real estate development enterprises.In order to reduce the impact of economic policy uncertainty on mergers and acquisitions of listed real estate development enterprises,this paper puts forward countermeasures from the perspectives of real estate enterprises and the government: real estate enterprises should pay attention to the policy trend in time,make full use of internal and external financing channels,fully grasp and control the pace of mergers and acquisitions and the cost of mergers and acquisitions,improve the quality of products and services,and promote the growth of business income;The government should improve the scientificity and stability of policy formulation,implement the responsibility of policy subject,and strengthen the publicity of policy.