Analysis Of Regional Factors Of Financial Risk Of Real Estate Listed Companies

Nowadays,the real estate is the pillar of economy in China.Nonetheless,an obvious regional difference which is appeared in the development of China's real estate is not ignorable.The first-tier cities and some developed second-tier cities are still in short supply,whose property prices is still high,but the structural of supply and demand is unbalanced in most of third-tier or fourth-tier cities,where there has been serious inventory problems and no rising power of house prices.This proves that regional factors have different effects on financial risk of the real estate listed companies.Many scholars studied the financial risk factors in real estate companies in the past,but there are a few scholars aimed at the regional factors.Based on the mentioned above background,this paper begins to study from the perspective that regional factors impact on the real estate listed companies' financial risk and analyzes whether and how the regional factors influence financial risk.It can make some guidance for real estate companies and make reference for the government,which guides the development of the real estate.Z-Score model,also known as z-score model,it is founded by the Edward I.Altman professor of New York university.It reflects enterprises' financial situation from the asset liquidity,profitability,financial structure,solvency and development.When Z value is smaller,it indicates that the financial risk is larger.On the other hand,when Z value is larger,the financial risk is smaller.On the basis of regional difference background theory and financial risk related theory,this paper adopts the method,named Hierarchical linear Model(HLM).We select the data of 40 real estate listed companies in 11 provinces from 2009 to 2014 as samples.It uses the Z value of the real estate listed company as the dependent variable,regional labor participation rate,investment level,industrialization level,external dependency,urbanization level as independent variable,and selects the top five shareholders' shareholding,asset growth rate and asset-liability ratio as control variables to analyzethe effect of regional factors on the financial risk in real estate listed companies.This paper arrives at the following conclusions:1.The labor participation rate of regional variable has a significant negative impact on the Z value of real estate listed company.Specifically,when labor participation rate is higher,the Z value is smaller,and the financial risk of real estate listed companies is higher.2.The regional investment level has a significant positive influence on the Z value of real estate listed company.That is,when investment level in region is higher,the Z value is larger,and the financial risk is smaller.3.The industrialization level of regional variable positively influence on the Z value of real estate listed company.That is,when the industrialization level is higher,the Z value is larger,and the financial risk of real estate listed company is smaller.4.The regional economic external dependency negatively impacts on the Z value of real estate listed company.That is,when the external dependency is higher,Z value is smaller,and the financial risk of real estate listed companies is higher.5.The regional urbanization level has a significant negative influence on the Z value.That is,when the level of urbanization is higher,the Z value is smaller and the financial risk of real estate listed companies is higher.