Research The Financial Risk Based On Cash Flow Management

The level of cash flow management has a significant impact on the size of the financial risk. The lower level of cash flow management easily leads to increase the probability of financial risk and the financial crisis. On the contrary, the higher level of cash flow management easily stimulates enterprises to obtain net cash flow, improve efficiency level and improve the financial situation, the higher level of cash flow management also can prevent and reduce the financial risk of enterprise.Real estate is a capital-intensive industry. In terms of cash flow management, the real estate company has many features, such as:the big demand for cash flow, the long cash flow payback period and the poor liquidity of assets. These features of real estate company have big demand of their cash flow management. In particular, under the double impact of the international financial environment and the national macro-control policy, the financial risk of the real estate company is increasingly grim. Due to the level of cash flow management has so important impact on the size of the financial risk that from the perspective of cash flow management’study of the financial risk of the real estate business is essential. Meanwhile, it is a worthy subject of study too.On this basis, firstly the dissertation introduces the research background and purpose, the previous researches, the research methods and the expected contribution; secondly, the dissertation introduces the related theories of cash flow management and financial risk. Meanwhile, the dissertation theoretically demonstrates the relationship between cash flow management and financial risk; thirdly, the dissertation select the MN Real Estate Development Company as a specific object to study, and analyzes the reasons of example’s financial risk from the perspective of cash flow management. When analyzing the reasons of financial risk, the dissertation studies the macroeconomic policy background, industry characteristics and microscopic cash flow management; fourthly, by positive research to studying the real estate companies in Shanghai Stock Market and Shenzhen Stock Market, the dissertation confirms that the high level cash flow management can significantly reduce the financial risk of the enterprise and improve the enterprise’s efficiency; finally, based on the case studying and positive research of the real estate industry, the dissertation holds some specific recommendations to prevent the financial risk from the financing, investment, operating terms.In a word, the dissertation studies that how the cash flow management impacts the financial risk of the real estate company. Meanwhile, the dissertation also makes some recommendations on how to prevent the financial risks by cash flow management to the real estate company. The dissertation hopes to help the real estate company to enhance the level of cash flow management, reduce the financial risk, and promote the long-term development through the effective analysis and good methods.