Land purchasing behavior of real estate enterprises: An organizational status perspective
Abstract
Based on resource dependency and signaling theories, this study examines how organizational status affects land purchasing behavior in listed real estate enterprises on China’s Shanghai and Shenzhen A-shares from 2006 to 2023. The findings indicate that the organizational status of real estate enterprises positively impacts their land purchase area, price, and quantity. Further analysis reveals that managerial overconfidence mediates this relationship. Heterogeneity analysis shows that the organizational status of state-owned real estate enterprises positively influences all three types of land purchasing behaviors, while for non-state-owned enterprises, it only significantly affects the area and price of land purchases, not the quantity. This study enriches the theory on land purchasing behavior of real estate enterprises, expands the application scope of organizational status, reveals the mechanisms through which organizational status affects land purchasing behavior and provides valuable insights for guiding rational competition among real estate enterprises, optimizing land resource utilization, and promoting the healthy and sustainable development of the real estate industry.
Keyword : organizational status, real estate enterprises, land purchase behavior, resource dependence, signaling theory, managerial overconfidence
How to Cite
Liu, G., Cui, Y., & Li, Z. (2025). Land purchasing behavior of real estate enterprises: An organizational status perspective. International Journal of Strategic Property Management, 29(1), 35–47. https://doi.org/10.3846/ijspm.2025.23306
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Ma, L., & Sang, D. (2024). Would carbon tax policy promote real estate prices? International Review of Financial Analysis, 96(Part A), Article 103668. https://doi.org/10.1016/j.irfa.2024.103668
Malmendier, U., & Tate, G. (2008). Who makes acquisitions? CEO overconfidence and the market’s reaction. Journal of Financial Economics, 89(1), 20–43. https://doi.org/10.1016/j.jfineco.2007.07.002
Phua, K., Tham, T. M., & Wei, C. (2018). Are overconfident CEOs better leaders? Evidence from stakeholder commitments. Journal of Financial Economics, 127(3), 519–545. https://doi.org/10.1016/j.jfineco.2017.12.008
Sauder, M., Lynn, F., & Podolny, J. M. (2012). Status: Insights from organizational sociology. Annual Review of Sociology, 38, 267–283. https://doi.org/10.1146/annurev-soc-071811-145503
Su, H., & Huang, Y. (2011). The factors contributing to the expansion of real estate investment demand in China: Strategies for stabilizing Chinese housing prices. The Journal of Yunnan Administration College, 13(03), 138–141. https://doi.org/10.16273/j.cnki.53-1134/d.2011.03.010
Sun, J., & Zhang, T. (2022). Geographic diversification and risk management in real estate firms. Journal of Property Investment & Finance, 40(5), 467–483. https://doi.org/10.1080/08965803.2023.2178739
Tang, S., & Leung, L. (2018). Democracy and economic growth. International Journal of Data Analysis Techniques and Strategies, 11(1), 58–80. https://doi.org/10.1504/IJDATS.2019.096622
Wang, W., & Tian, B. (2023). Research on the impact of economic policy uncertainty on the high-quality development of regional banks in China. Economic Forum, (11), 20–31. https://doi.org/10.3390/ijerph20042855
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Wen, Z., Zhang, L., & Hou, J. (2004). Testing application of the mediating effects. Acta Psychologica Sinica, (05), 614–620.
Yang, G., & Sun, X. (2024). Changes, evolution logic, and policy orientation of China’s land consolidation policy from the perspective of supply and demand and resilience. Rural Economy, (03), 44–53.
Yang, T., & Shen, J. (2016). Systematic analysis of innovation mechanisms in small and medium-sized enterprises: A game theory perspective. Journal of Technical Economics & Management, (1), 50–53.
Yi, J., Zhang, X., & Wang, H. (2015). Firm heterogeneity, top executives’ overconfidence, and corporate innovation performance. Nankai Business Review, 18(06), 101–112. https://doi.org/10.3969/j.issn.1008-3448.2015.06.011
Yu, H. (2011). Quality of internal controls credit model and enterprise value: An empirical analysis by Shenzhen A-share listed enterprises. The Theory and Practice of Finance and Economics, 32(03), 44–50.
Zhang, J. (2023). Digital finance, technological innovation, and corporate competitiveness: Empirical evidence from Chinese A-share listed enterprises. South China Finance, (01), 23–36.
Zhang, J., & Zhang, Y. (2024). Does digital transformation enhance the sustainable development performance of enterprises? Friends of Accounting, (13), 55–62.
Zhang, Y., Halder, P., Zhang, X., & Qu, M. (2020). Analyzing the deviation between farmers’ land transfer intention and behavior in China’s impoverished mountainous area: A Logistic-ISM model approach. Land Use Policy, 94(5), Article 104534. https://doi.org/10.1016/j.landusepol.2020.104534
Zhao, F., & Liu, R. (2024). Spatial allocation of land, differentiation of local government debt and coordinated regional development. Journal of Quantitative & Technological Economics, 41(04), 26–47. https://doi.org/10.13653/j.cnki.jqte.20240226.009
Zhou, Y., Mao, S., & Chen, X. (2020). Status compensation: The effect of brand anthropomorphism ‘Brand as a Servant’ on the purchase intention. Foreign Economics & Management, 42(2), 43–58. https://doi.org/10.16538/j.cnki.fem.20191112.001
Cheng, J., Zhao, J., Zhu, D., Jiang, X., Zhang, H., & Zhang, Y. (2022). Land marketization and urban innovation capability: Evidence from China. Habitat International, 122, Article 102540. https://doi.org/10.1016/j.habitatint.2022.102540
Deshmukh, S., Goel, A. M., & Howe, K. M. (2013). CEO overconfidence and dividend policy. Journal of Financial Intermediation, 22(3), 440–463. https://doi.org/10.1016/j.jfi.2013.02.003
Dong, L. (2021). Economic policy uncertainty, managerial confidence, and investment efficiency. Statistics & Decision, 37(10), 165–169. https://doi.org/10.13546/j.cnki.tjyjc.2021.10.036
Dou, J., Wang, G., & Ma, R. (2023). Policy uncertainty and scissors gap of land transfer price: From the perspective of official turnover frequency. Modern Economic Science, 45(05), 89–102. https://doi.org/10.20069/j.cnki.DJKX.202305007
Fan, Z., Cheng, K., & Feng, C. (2022). The land price control and firm’s R&D innovation: Evidence from bunching identification. Journal of Management World, 38(08), 156–178. https://doi.org/10.19744/j.cnki.11-1235/f.2022.0119
Flynn, M., Dooley, L., O’Sullivan, D., & Cormican, K. (2003). Idea management for organizational innovation. International Journal of Innovation Management, 7(04), 417–442. https://doi.org/10.1142/S1363919603000878
Gervais, S., Heaton, J. B., & Odean, T. (2011). Overconfidence, compensation contracts, and capital budgeting. Journal of Finance, 66(5), 1735–1777. https://doi.org/10.1111/j.1540-6261.2011.01686.x
Hao, Y., Li, J., Cui, X., & Ni, J. (2023). CEO experience, managerial overconfidence, and investment efficiency: Evidence from a natural experiment in China. Social Science Electronic Publishing, 80, Article 102083. https://doi.org/10.1016/j.pacfin.2023.102083
Hau, H., & Ouyang, D. (2024). Can real estate booms hurt firms? Evidence on investment substitution. Journal of Urban Economics, 144, Article 103695. https://doi.org/10.1016/j.jue.2024.103695
Huang, Z., & Du, X. (2018). Holding the market under the stimulus plan: Local government financing vehicles’ land purchasing behavior in China. China Economic Review, 50(8), 85–100. https://doi.org/10.1016/j.chieco.2018.04.004
Jing, R., & Zhao, Y. (2020). Momentum effects of organizational growth: Evidence from land purchasing decisions of real estate enterprises in China. Systems Engineering-Theory & Practice, 40(04), 875–887. https://doi.org/10.12011/1000-6788-2019-0871-13
Kaplan, S. N., Sørensen, M., & Zakolyukina, A. A. (2022). What is CEO overconfidence? Evidence from executive assessments. Journal of Financial Economics, 145(2), 409–425. https://doi.org/10.1016/j.jfineco.2021.09.023
Kilpi, V., Lorentz, H., Solakivi, T., & Malmsten, J. (2017). The effect of external supply knowledge acquisition, development activities, and organizational status on the supply performance of SMEs. Journal of Purchasing and Supply Management, 24(3), 247–259. https://doi.org/10.1016/j.pursup.2017.08.001
Li, B., & Li, R. Y. M. (2021). Factors influencing large real estate companies’ competitiveness: A sustainable development perspective. Land, 10, Article 1239. https://doi.org/10.3390/land10111239
Li, H., & Zhang, T. (2021). Organizational status, signaling, and firm performance: Evidence from the real estate sector in China. Journal of Business Research, 134, 518–528.
Li, Z., Kong, W., & Li, Z. (2024). Carbon performance of digital transformation in manufacturing enterprises: Internal mechanisms and empirical evidence. Modern Economic Science, 46(04), 100–111.
Lin, Z., Yang, H., & Arya, B. (2009). Alliance partners and firm performance: Resource complementarity and status association. Strategic Management Journal, 30(9), 921–940. https://doi.org/10.1002/smj.773
Liu, G., & Sun, W. (2023). Effect of real estate enterprises status on their cross-regional investment behavior. Management Review, 35(11), 45–61. https://doi.org/10.14120/j.cnki.cn11-5057/f.2023.11.007
Liu, W. (2023). Land spatial allocation and urbanization acceleration: An empirical study based on geographic regression discontinuity. Review of Industrial Economics, (05), 157–176. https://doi.org/10.19313/j.cnki.cn10-1223/f.2023.05.005
Ma, L., & Sang, D. (2024). Would carbon tax policy promote real estate prices? International Review of Financial Analysis, 96(Part A), Article 103668. https://doi.org/10.1016/j.irfa.2024.103668
Malmendier, U., & Tate, G. (2008). Who makes acquisitions? CEO overconfidence and the market’s reaction. Journal of Financial Economics, 89(1), 20–43. https://doi.org/10.1016/j.jfineco.2007.07.002
Phua, K., Tham, T. M., & Wei, C. (2018). Are overconfident CEOs better leaders? Evidence from stakeholder commitments. Journal of Financial Economics, 127(3), 519–545. https://doi.org/10.1016/j.jfineco.2017.12.008
Sauder, M., Lynn, F., & Podolny, J. M. (2012). Status: Insights from organizational sociology. Annual Review of Sociology, 38, 267–283. https://doi.org/10.1146/annurev-soc-071811-145503
Su, H., & Huang, Y. (2011). The factors contributing to the expansion of real estate investment demand in China: Strategies for stabilizing Chinese housing prices. The Journal of Yunnan Administration College, 13(03), 138–141. https://doi.org/10.16273/j.cnki.53-1134/d.2011.03.010
Sun, J., & Zhang, T. (2022). Geographic diversification and risk management in real estate firms. Journal of Property Investment & Finance, 40(5), 467–483. https://doi.org/10.1080/08965803.2023.2178739
Tang, S., & Leung, L. (2018). Democracy and economic growth. International Journal of Data Analysis Techniques and Strategies, 11(1), 58–80. https://doi.org/10.1504/IJDATS.2019.096622
Wang, W., & Tian, B. (2023). Research on the impact of economic policy uncertainty on the high-quality development of regional banks in China. Economic Forum, (11), 20–31. https://doi.org/10.3390/ijerph20042855
Wang, Y., Yang, Z., & Huang, S. (2021). The research on investment decision mechanisms of real estate developers under uncertainty. Journal of Central University of Finance & Economics, (08), 85–98. https://doi.org/10.19681/j.cnki.jcufe.2021.08.008
Wen, Z., Zhang, L., & Hou, J. (2004). Testing application of the mediating effects. Acta Psychologica Sinica, (05), 614–620.
Yang, G., & Sun, X. (2024). Changes, evolution logic, and policy orientation of China’s land consolidation policy from the perspective of supply and demand and resilience. Rural Economy, (03), 44–53.
Yang, T., & Shen, J. (2016). Systematic analysis of innovation mechanisms in small and medium-sized enterprises: A game theory perspective. Journal of Technical Economics & Management, (1), 50–53.
Yi, J., Zhang, X., & Wang, H. (2015). Firm heterogeneity, top executives’ overconfidence, and corporate innovation performance. Nankai Business Review, 18(06), 101–112. https://doi.org/10.3969/j.issn.1008-3448.2015.06.011
Yu, H. (2011). Quality of internal controls credit model and enterprise value: An empirical analysis by Shenzhen A-share listed enterprises. The Theory and Practice of Finance and Economics, 32(03), 44–50.
Zhang, J. (2023). Digital finance, technological innovation, and corporate competitiveness: Empirical evidence from Chinese A-share listed enterprises. South China Finance, (01), 23–36.
Zhang, J., & Zhang, Y. (2024). Does digital transformation enhance the sustainable development performance of enterprises? Friends of Accounting, (13), 55–62.
Zhang, Y., Halder, P., Zhang, X., & Qu, M. (2020). Analyzing the deviation between farmers’ land transfer intention and behavior in China’s impoverished mountainous area: A Logistic-ISM model approach. Land Use Policy, 94(5), Article 104534. https://doi.org/10.1016/j.landusepol.2020.104534
Zhao, F., & Liu, R. (2024). Spatial allocation of land, differentiation of local government debt and coordinated regional development. Journal of Quantitative & Technological Economics, 41(04), 26–47. https://doi.org/10.13653/j.cnki.jqte.20240226.009
Zhou, Y., Mao, S., & Chen, X. (2020). Status compensation: The effect of brand anthropomorphism ‘Brand as a Servant’ on the purchase intention. Foreign Economics & Management, 42(2), 43–58. https://doi.org/10.16538/j.cnki.fem.20191112.001