Working PaperArticleVersion 2This version is not peer-reviewed
Do Largest Shareholders Affect Financial Sustainability Under Holdings Heterogeneity? -Regulation/Intermediary Role of Financial Constraints in Coastal Real Estate
Version 1
: Received: 7 October 2020 / Approved: 8 October 2020 / Online: 8 October 2020 (16:05:14 CEST)
Version 2
: Received: 16 October 2020 / Approved: 19 October 2020 / Online: 19 October 2020 (14:32:53 CEST)
How to cite:
Zhang, L.; Yu, W.; Xia, X. Do Largest Shareholders Affect Financial Sustainability Under Holdings Heterogeneity? -Regulation/Intermediary Role of Financial Constraints in Coastal Real Estate. Preprints2020, 2020100182
Zhang, L.; Yu, W.; Xia, X. Do Largest Shareholders Affect Financial Sustainability Under Holdings Heterogeneity? -Regulation/Intermediary Role of Financial Constraints in Coastal Real Estate. Preprints 2020, 2020100182
Zhang, L.; Yu, W.; Xia, X. Do Largest Shareholders Affect Financial Sustainability Under Holdings Heterogeneity? -Regulation/Intermediary Role of Financial Constraints in Coastal Real Estate. Preprints2020, 2020100182
APA Style
Zhang, L., Yu, W., & Xia, X. (2020). Do Largest Shareholders Affect Financial Sustainability Under Holdings Heterogeneity? -Regulation/Intermediary Role of Financial Constraints in Coastal Real Estate. Preprints. https://doi.org/
Chicago/Turabian Style
Zhang, L., Wenling Yu and Xiqiang Xia. 2020 "Do Largest Shareholders Affect Financial Sustainability Under Holdings Heterogeneity? -Regulation/Intermediary Role of Financial Constraints in Coastal Real Estate" Preprints. https://doi.org/
Abstract
Real estate industry is related to the national economy and people's livelihood，characterized by a high degree of financial intensity. The enterprises in this industry need certain financial ability and large shareholder controlling ability to support their survival. However，due to the multiple adverse impacts of current state policies，banks and private capital，the credit crunch，the sudden decrease in withdrawn funds and the limitation of internal financing，the problem of capital restraint of real estate enterprises has become more and more serious. From the perspective of corporate governance，this paper studies the interaction among financial constraints，ownership concentration and corporate performance under different shareholding states by analyzing the quantitative characteristics of equity structure，and looks for the appropriate range of the largest shareholder holding ratio，which has considered the financial performance and risk. It is found that raising the ownership concentration can effectively ease the financing constraints and improve the performance of enterprises，both of which are significant under the state of high ownership concentration， while the financial constraints play a significant intermediary effect under the State of absolute holding， while in the decentralized state of ownership，there is a significant regulatory effect，and the interaction of the three will be different due to the size of the enterprise.
Keywords
Financial Constraints; Agency Cost; Equity Concentration; Holding Heterogeneity; Real Estate Industry
Subject
Business, Economics and Management, Accounting and Taxation
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Commenter: Lipai Zhang
Commenter's Conflict of Interests: Author