A Research Of Real Estate Enterprises' Cash-Flow Risk Management

Real estate is a capital-intensive industry,each real estate project development requires a remarkable amount of money.Once meets insufficient fund the project would fall into a dilemma,even lead to the bankruptcy of the entire enterprise.This very characteristic makes cash flow management indispensable in real estate industry.This thesis reviews the relevant theories of cash flow management,analyzes the macroeconomic situation,the development trend of the real estate industry.After the analysis,3 phenomenon discovered.First to be mentioned is that due to the significant change of the macro environment,competition becomes increasingly fierce in the real estate market,marking mature comes to be the market.Secondly comes to that with the deepening of economic reform in China,in consider of controlling financial risk and optimizing economic structure,the real estate market is and will be the key fields of the coming policy.Finally is that under the pressure of macro situation and market gaming situation,the real estate enterprises will face higher cash flow management requirements.In the existing literature,few scholars studied state-held cash flow risk management of real estate enterprises based on the current economic situation.This thesis attempts to do research from previous perspective.In this thesis,after analysis to the macro economy and the market and a review of existed theory,company A was selected as a case due to its good operating performance.Through financial analysis,taking various aspects factors into account,cash flow management situation of company A was summarized and analyzed,the historical cause of formation was disclosed.At the end of this stage the forming path of cash flow risk was detailed analyzed.Through analysis,this thesis comes to the following conclusions.First of all,cash-flow risk management of company A was not regarded as a part of strategy management.Secondly,cash flow from operating activities is on the secondary condition of cashflow management.Thirdly,some existed cash-flow risk control patterns do not adapt the economy-transform development situation while some new kinds of cash-flow risk are emerging.For the real estate enterprise cash flow risk management features and shortcomings,this thesis believes that improvement could be seen from the following aspects.Firstly comes to the strengthening the strategic awareness of cash flow risk management and the emphasized concern of risk management effectiveness evaluation.Secondly,the partial and the whole should be paid equal attention and the high-risk part should be under surveillance.The last but not the least is to use financial tools to make cash flow from operating activities available for cash-flow risk management.