|
|
|
| A Study on the Influence of Shortfall in Performance Aspiration on Chinese Manufacturing Firms’Entry into the Real Estate Industry |
| SONG Yuanyang，KUANG Qian，CHEN Weiwei |
| 1. East China University of Science and Technology， Shanghai， China；2. Anhui Greentown Rose Garden Real Estate Development Company Limited， Hefei， China |
|
|
|
|
Abstract Using Chinese manufacturing listed companies from 2008 to 2017 as the sample, this study investigates the influence of shortfall in performance aspiration on Chinese manufacturing firms’ entry into the real estate industry. The results suggest that the larger the shortfall in performance aspiration, the more serious the threat to efficiency that companies face, and the more likely companies are to enter the real estate industry to improve performance. The shortfall in performance aspiration has comparable influence as that of the profitability of the real estate industry and firm ownership of land. Private controlling shareholders and controlling shareholders with a high proportion of cash flow rights are more sensitive to the threat of efficiency caused by the shortfall in performance aspiration, and thus are more likely to mitigate the threats by entering the real estate industry, resulting in a greater impact of the shortfall in performance aspiration on entering the real estate industry. The more slack resources a firm has, the stronger the effect of the shortfall in performance aspiration on entering the real estate industry. Further analysis suggests that shortfall in performance aspiration also has a positive effect on the ratio of a manufacturing firm’s sales in the real estate industry to its total sales.
|
|
Received: 26 March 2020
|
|
|
|
|
|
|
