Research On Over Investment Of Real Estate Enterprises In China

In recent years, China’s economic development, investment has become one of the most important reasons for driving China’s continuous growth of GDP. But the attendant is overheated investment, excess production capacity. China’s real estate industry is no exception. Due to China’s policy changes and economic slowdown, facing the environmental change of China’s real estate industry is very fast. In addition, China’s real estate industry because of its own characteristics, often hold a lot of free cash flow. So this is the real estate industry over investment and free cash flow for the empirical analysis, to explore China’s real estate listed companies whether there was a the use of a large number of free cash flow is the phenomenon of excessive investment. According to the Richard model, the relationship between China’s real estate industry, free cash flow and over investment analysis. I chose Shenzhen, pay real estate listed companies data from 2009 to 2014 for six years, after the sorting and filtering obtained 833 valid data, I use the SPSS for data collection and analysis. The results show that the phenomenon of over investment in China’s real estate listing Corporation is very common, and it has a very significant positive correlation with the free cash flow. Finally, I according to the empirical analysis results, combined with their own life experience and work experience, and reference at the Shandong University of Finance and economics in the past two years learning the professional knowledge, from three aspects to solve China’s real estate listed companies suggestions, hoping to improve China’s real estate investment conditions to make their own meager strength.