Study On Lvjing Holding Co.,Ltd's Cash Flow Risk Management Under The Regulation Policy

The real estate industry is a capital intensive industry,which needs a lot of money into the real estate development projects,investment and recovery of funds for project development plays an important role,the quality of cash flow and cash flow risk will also affect the development of enterprises.In addition,the unique market in China,the real estate industry policy sensitivity,making the real estate industry must be concerned about the direction of development of regulatory policies,timely make appropriate decisions.Therefore,it is of great significance to study how to manage cash flow and control cash flow risk in the development process of real estate enterprises.In the existing literature,most scholars studied the cash flow in real estate enterprises investment behavior under risk,this paper attempts to study from the perspective of.This paper first introduces the development status of the real estate industry,then analysis the regulation policy of carding,policy period is divided into stages and policy stimulus policies in different stage,analysis stage of the real estate industry overall cash flow,and then using principal component analysis method for screening the cash flow risk index and construct the risk early-warning model,this paper finally selects a small and medium company has been listed 24 years but had six renamed history,experience repeatedly failed the transformation of Lvjing Holding Co.,Ltd that combination of different regulatory policies during the period of starting,analysis of the causes of Lvjing Holding Co.,Ltd cash flow problems.Based on the real estate industry and the company of cash flow risk management comprehensive analysis of the following conclusions:(1)regulatory policy will not immediately affect the enterprise's cash flow situation;(2)whether or suppression policy influence in the effect of incentive policies under the financing activities,the real estate business in positive cash inflows in the total net cash inflow in the largest proportion of net flows from operating activities influenced by policies,net cash flow from investing activities generally have a negative effect.Lvjing Holding Co.,Ltd holding cash flow can be obtained and the characteristics of the industry situation is different:(1)in the regulation of policy easing,the company cash flow has not been significantly improved,while inhibiting policy under the influence of the business situation is one disaster after another cash flow risk is greater;and(2)whether or suppression in policy the total net inflow of cash incentives,mainly rely on the net cash flow from operating activities,and with the industry to enhance the degree of concentration,lack of the company competition,if at this time and in a tightening policy environment,net operating cash flow will be affected.Aiming at the above problems,this paper gives the following suggestions:(1)increase the financing channels;(2)control cash turnover;(3)determine the best amount of cash holdings;(4)continue to find new investment projects.