Cash flow uncertainty, ownership structure and corporate real estate holding

This study examines the relationship between cash flow uncertainty and corporate real estate holdings and investigates the role of ownership structure. Using a dataset of A-share listed companies in China, we find that there is a significantly negative association between cash flow uncertainty and corporate real estate holdings, and this effect is more pronounced for private enterprises (non-SOEs). The results hold firmly after performing various methods to address potential endogeneity and a set of related robustness tests. From the perspective of supply-led and debt cost discrimination, we also demonstrate that state-owned enterprises (SOEs) can benefit from favourable credit discrimination, which mitigates the impact of cash flow uncertainty.