Abstract
The real estate industry plays an important role in the economic development in China. The purposes of this paper are to measure the operating efficiency of the real estate industry and also compare the different influencing factors on the efficiency. 30 companies listed in Shenzhen and Shanghai markets are selected as the sample companies of operating efficiency study. The data is collected from 2009 until 2015. C2R and B2C models of the data envelopment analysis (DEA) are used to derive findings. The present study applied Tobit regression model to study different factors’ influence on the efficiency. We concluded that efficiency was not high among most companies and the efficiency gap was quite wide. The results of the Tobit regression model showed that the efficiency was positively correlated with the net interest rate and education level, not so correlated with proportion of the first major shareholders and negatively with asset-liability ratio. Based on the conclusions, the paper put forward some specific suggestions.
Highlights
In order to make the final results reflect the situation of listed real estate enterprises better, the following points are considered: 1) In this paper, we selected the companies which main business is real estate development and construction, and do not consider the companies involved in multi field; 2) Generally speaking, the number of decision making units (DMUs) is more than two times the sum of the inputs and outputs
This paper deals with the data of 30 listed real estate enterprises during 20092015
The fluctuation of technical efficiency is large: it shows an upward trend in 2009-2013, because the country has adopted a series of measures to expand domestic demand after the financial crisis
Summary
Refer to the data released by the National Bureau of statistics in 2016, the real estate industry’s output value contributed 6.5% GDP for the year. Real estate industry directly drives the development of multiple industries. The healthy development of real estate has a direct impact on the development of China’s national economy; real estate industry has been the financial core during the last ten years. The healthy operation is the cornerstone of China’s financial security. In the company-level perspective, it’s necessary to improve operating efficiency because efficiency is a central problem (perhaps the only central problem) to be studied in economics
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