The impact of real estate enterprises’ land acquisition strategies on debt default risk

Purpose This study aims to investigate the impact of real estate enterprises’ land acquisition strategies on its debt default risk in China. Design/methodology/approach In this study, the land acquisition strategies of real estate enterprises listed in the Shanghai and Shenzhen A-share markets of China are examined, covering the period from 2010 to 2023. The effects of land acquisition scale, region and method on debt default risk are explored using a fixed effects model. Findings The findings reveal that regional focus and acquisition method mitigate debt default risk, although economic policy uncertainty can weaken or even reverse this protective effect. Land acquisition scale exacerbates default risk, with economic policy uncertainty amplifying this negative impact. Originality/value This study provides decision-making guidance for the optimization of land acquisition strategies by real estate firms and land supply strategies by Chinese government authorities.