Research On Valuation Of Real Estate Companies Based On RIM

With the coming of value management era, enterprise valuation becomes the focus which attracts more and more people increasingly. Evaluation is the precondition and gist of all of the financial policies. It plays an important role in many fields, such as investing, financial management, enterprise purchase and so on. Residual Income Model (RIM) is such a kind of evaluation models that relates enterprise value with accounting information. It plays an important role in enterprise evaluation.Along with the rapid stable development of national economy, the real estate industry becomes more and more important. Real estate enterprises, especially the listed real estate enterprises, their value has attracted more attention by investor, consumer, enterprises and governments a. So it is very important to do some research on the evaluation listed real estate enterprises.RIM follows the hypothesis of continuous operating, so it has the same disadvantage of income discount methods. According to this, this paper has improved the original RIM. Firstly, it brings a special variable to the model, so the improved RIM is much more suitable to the real estate industry. Next, this paper transforms the original RIM to a linear one. In this case, it is unnecessary to follow the hypothesis of continuous operating. The improved RIM conquers the endless discount of lasting income. The analysis of the result shows that the improved RIM is much more maneuverability and reasonable to the enterprise's valuation.According to the theory of RIM, the executives should pay more attention to the creativity of value. So after the analysis of resource of RI, this paper establishes models to research the real resource and element of RI. The result shows that RI comes from operating activities and can be influenced by ability of competition, growth and stock structure.In order to do the research of improvement and resource of RIM, this paper combines the theoretical explanation with analytic demonstration. Throughout the research, an improved RIM is established, and the resource of RI is clarified. The result can instruct the activities of investors and managers.