A Study On Financial Risk Evaluation For Real Estate Corporation

In recent years,real estate industry in China has developed by leaps and bounds.To improve the real estate policy,as well as the financial policies of innovation,continuously for the real estate business to create more and more broad space for development.However, because the Real Estate Industry is characterized by huge investment,high risks,high returns, coupled with China's real estate industry is still not standardized and financial system is far from perfect,the real estate industry has bear tremendous financial risks.According to statistics,the debt-to-aset ratio of a significant number of enterprises in real estate reaches as highly as 70%,some even over 90%.When the adjustment and control of government's macro policies become tight,enterprises will face more and more complex and increasingly serious environmental challenges,how to identify,evaluate and guard against the financial risk has become a serious problem.This paper finds that the financial risks evaluation for real estate corporations can reflect their financial risks throuth review of the domestic and foreign reasearch related to financial risks and the analysis of the financial risks for real estate corporations.I established a real estate enterprise financial risk evaluation index system,based on a common financial evaluation system,integrated financial indicators which were chosed by predecessors and the characteristic of financial risks for the real estate industry.Through the factor analysis of indicators on the Elimination of the correlation and multiple linearity between the variables,I find some factors reflecting the profitability,solvency,operational efficiency,the ability to grow,and the ability to obtain cash flow,the weighted factor scores according to a comprehensive evaluation.The means eliminate the infection of external factors on the financial indicators,which can be horizontally compared between different enterprises with the the degree of financial risks.In this paper,the conclusions of the study on the real estate business operators,investors and state enterprises have a certain amount of reference.