Please use this identifier to cite or link to this item:
Fan, Ying
Leung, Charles Ka Yui
Yang, Zan
Year of Publication: 
Series/Report no.: 
ISER Discussion Paper No. 1130
This paper studies whether (and how) corporate decisions are affected by internal factors (such as the financial conditions of own company) and external factors (such as the actions of local competitors) in an imperfectly competitive environment. We study the listed real estate developers in Beijing as a case study. Our hand-collected dataset includes transaction-level information booked indicators (such as profitability, liability, and liquidity) and un-booked financial indicators (political connections). Our multi-step empirical model shows that both the firm's financial conditions and her competitors' counterparts are essential but play different roles in the output design, pricing, and the time-on-the-market (TOM). Internal versus external factors' relative importance relates to the degrees of market concentration in a nonlinear manner. Local market leaders' existence alters the small firms' strategy and leads to higher selling prices and slower selling pace in the local market. Our findings survive various robust checks.
corporate financial status
output market decision
internal and external driven
realestate developers
housing supply
Document Type: 
Working Paper

Files in This Item:
895.57 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.