TITLE:
Empirical Analysis on Efficiency of Listed Real Estate Companies in China by DEA
AUTHORS:
Qiting Chen, Fengdan Li
KEYWORDS:
DEA, Efficiency Evaluation, Real Estate Industry, Tobit Regression Model
JOURNAL NAME:
iBusiness,
Vol.9 No.3,
August
30,
2017
ABSTRACT: The real estate industry plays an important role in
the economic development in China. The purposes of this paper are to measure
the operating efficiency of the real estate industry and also compare the different
influencing factors on the efficiency. 30 companies listed in Shenzhen and
Shanghai markets are selected as the sample companies of operating efficiency
study. The data is collected from 2009 until 2015. C2R and B2C
models of the data envelopment analysis (DEA) are used to derive findings. The
present study applied Tobit regression model to study different factors’
influence on the efficiency. We concluded that efficiency was not high among
most companies and the efficiency gap was quite wide. The results of the Tobit
regression model showed that the efficiency was positively correlated with the
net interest rate and education level, not so correlated with proportion of the
first major shareholders and negatively with
asset-liability ratio. Based on the conclusions, the paper put forward
some specific suggestions.