Author(s): Lin Chaoying, Yu Xiangqun, Yang Guangqing
Pages: 116-122
Year: 2015 Issue:  8
Journal: Technical Economy
Keyword:  monetary policy; overinvestment; risk-taking;
Abstract: Taking the listed companies in China from real estate industry during 2003‐2013 ,this paper uses Richardson investment model to measure the overinvestment of listed companies in real estate industry ,and empirically tests the existence of overinvestment in listed companies in real estate industry ,the impact of China′s monetary policy on the overinvestment of listed companies in real estate industry and the relation‐ship between overinvestment and risk‐taking.The result shows as follows :tight monetary policy restrains the overinvestment behavior of real es‐tate enterprises ,and ease monetary policy encourages it ;during the boom period ,the impact of overinvestment on real estate enterprises′risk‐tak‐ing is not evident ;w hile during the recession period ,overinvestment evidently increases the risk‐taking level of real estate enterprises ,and ease monetary policy could make the risk‐taking level of real estate enterprises further increase .