TITLE:
Housing Collateral Value, Debt Level and Corporate Investment
AUTHORS:
Huihui Li
KEYWORDS:
Housing Collateral Value, Collateral Channel, Mediating Effect
JOURNAL NAME:
Modern Economy,
Vol.10 No.2,
February
13,
2019
ABSTRACT:
This paper uses the micro data of Chinese listed companies from
2003 to 2015 and the house price data of each province to study the
relationship and the mechanism between the housing collateral value of listed
companies and the company’s investment. The study found that corporate
investment is positively correlated with the value of housing collateral and
the housing collateral value has a positive impact on corporate investment by
acting on debt capacity. The results show that there is a collateral channel
betweenthe housing collateral value and the company’s investment, which provides
direct evidence for the positive impact of the housing collateral value to
corporate investment.