A Study on the Effects of the Purchase Restriction Policy on the Financial Leverage and Risk of Real Estate Enterprises

This study utilizes data from China's listed real estate enterprises between 2009-2019 and employs the continuous DID model to regress the two rounds of purchase restriction policies. The empirical results reveal that the first round of restriction policy (2010-2014) significantly improved the leverage ratio, while the second round (2016-2019) had an inhibitory effect on the leverage ratio. The impact on the leverage ratio was transmitted through the housing price. In the first round, the policy did not work, and the house prices and leverage ratio continued to rise. In contrast, the second round had a negative impact on the house price, and the increase of the leverage ratio was restrained through this transmission channel. Additionally, the study found that the first round had no impact on short-term and long-term solvency, while the second round improved short-term solvency but weakened long-term solvency. These findings provide a new perspective for preventing financial risk in the real estate industry in the future.