Research On The Financial Condition Of Real Estate Enterprises In China

With the development of economic,China's real estate industry has undergone enormous changes.China's total investment in social housing in 2006 is 19333.05 billion yuan RMB,soared to 8024.769 billion yuan in 2015,just ten years time,China's total investment in the whole society has quadrupled,which has not yet considered China's commercial real estate Investment,so China's real estate industry has been the focus of government's macroeconomic regulation and control.As China's real estate industry started late,management is not so perfect as western countries,so we need more research.For the real estate industry,there are two main views: the first one is from the total amount of the economy to do macro research,the second one is from the corporate financial situation for micro-research.These articles choosed to combine the real estate industry of listed company's industry data from the enterprise financial situation to do comprehensive research.This paper prepares and analyzes the relevant literature on the comprehensive evaluation of the financial status of the enterprises.It is found that these documents are divided into two categories.The first is the research on the evaluation method of the financial status of the enterprises,the second is the evaluation of the financial condition The research on the elements of these articles on the basis of the real estate industry listed companies to do a further analysis of the financial situation.First of all,i learned the theoretical knowledge of the financial situation of the enterprise,and the theoretical analysis is carried out from the aspects of solvency,operating ability,profitability,growth ability and cash flow status respectively.Further introduction of stakeholder theory and Principal-agent theory.Stakeholder theory defines the object of our financial situation analysis,and the principal-agent theory is the starting point of the financial situation analysis.Secondly,we compared the advantages and disadvantages of various financial analysis methods,carefully selected the entropy method and gray correlation analysis.The main approach is to first determine the index system,the use of entropy weight method for the selected indicators to empower,on the basis of which the gray correlation analysis to determine the company relative to our selected standard company relevance,and finally,based on the entropy Method and gray correlation analysis.Thirdly,we apply the comprehensive model of entropy weight method and gray relational analysis to the study of the financial status of 21 real estate enterprises in our country.We have carried out empirical analysis from microcosmic and macroscopic angles,that is,study these companies from five independent financial aspects,get the corresponding conclusions,and then i take all the financial aspects as a whole into consideration,and then study the overall financial situation,and do some corresponding analysis.At last,we make a conclusion and give some advice.The results show that,based on the 16 financial composite index system of 21 real estate enterprises selected in this paper,the weights of the operating capacity,growth ability and solvency are relatively large in the financial situation of the real estate enterprises,namely,the three indicators Which is the most important in all 16 financial indicators.In this paper,the financial status of 21 real estate enterprises is analyzed and integrated by the combination of entropy method and gray relational model,and the results are explained.In addition,we also put forward proposals for China's real estate enterprises,such as strengthening the management of enterprises,enhancing the financial capacity of enterprises,and we need some relevant policies issued by the government,and relevant regulatory authorities need to carry out more stringent supervision,also enriching the enterprise financial status evaluation system.