Theoretical Value Of The Real Estate Business Move Because Of The Analysis, Based On Causal Analysis

Assessment of firm value is a process of estimating the going concern value of a certain company. It is the precondition and foundation for us to judge firm value and make further investment policy or operational decision. Researchers have given great efforts to the assessment methods of firm value. However, most methods are lack of deep exploring and systematical research of value driving factors. A great deal of information created in the assessment process hasn't been used effectively, consequently weakening the effectiveness of value assessment and influencing our judgment of firm value.In this study, we reviewed numerous literatures on the assessment theories and methods of firm value, influential factors of firm value, particularity of excellent firms and then systematically generalized their findings. Considering current situation and development trend of China's housing industry, we summarized the driving factors of firm value from different levels based on the causal analysis theory. Then we examined the theoretical model, using the data from 30 listed companies of real estate industry through Panel Data Model and case study.Statistical analysis of samples indicated that the healthy and stable development of the national economy plays a positive role in promoting the value of real estate enterprises, while the macro-control policies of the 3 years (2002-2004) have a significant negative impact on the firm value of samples. Besides, the competing and cooperating status of this industry constrains the effective growth of firm value to some extent. It also showed that operating and growing capability positively affect firm value, while financial expense ratio plays a negative role with the greatest coefficient. However, the relationships between firm value and operating and management expense ratio as well as firm size are not so significant.From the case study of Vanke, we found that the prerequisite to maintain the growth of firm value is to keep and upgrade the rights and interests of the main stakeholders, while the foundamental engine to increase firm value lies in the adherence to the core values and constant transformation of its strategic decisions. Besides, the study also showed that the integration ability to make use of core resources on the simplistic, transparent and standardized developing road is a solid foundation for achieving sustainable profitability. Last but not least, an importantguarantee for its continued growth is the concerning about changes in the market, the maintaining of flexible and forward-looking rapid-reaction capability and continuing innovations.Currently, practical applications of causal analysis theory in certain industry and systematic research on firm value driving factors are rare. Therefore, this study is of exploring nature in a certain sense. However, as the time span of the sample data is not long enough and the information in the database is limited, we havn't examined or quantified all the driving factors. Thus, the reliability of some conclusions needs further confirmatory research. Moreover, the relevant conclusions of this study have yet to be universal tested. For future research, more aspects need to be improved to promote the academic development and the achievements application, such as the selection and quantification of variables, sample data accumulation and so on.