Abstract:

Based on land transaction data of Chinese listed companies from 2007 to 2020, this paper uses the Dynamic Panel Generalized Moment Estimation model to empirically test the existence of imitation and learning peer effects, and examine their mechanisms and heterogeneity factors. The empirical results show that corporate land investment has significant imitative and learning peer effects, and imitative peer effects are reflected in the decision-making period, while learning peer effects are delayed in the later stage. The mechanisms of peer effects are driven by information learning and competitive incentives, with lower local government intervention, higher marketization and greater competition, corporates have greater motivation to imitate their peers. Heterogeneity analysis indicates that non-state-owned enterprises, smaller and growing corporates are more inclined to imitate and learn from their peers.

Key words: corporate investment, land transaction, imitative peer effects, learning peer effects