Research On The Influence Of Internal Control On The Level And Value Of Cash Holdings Of Listed Real Estate Companies

Recently,after the cancellation of the purchase order,from 2016 to early 2017,with the land price rose as well as the house prices,the new round of housing bubble gradually intensified.Yi Gang,the new central bank governor,points out that the warning of a "Quake lake" in asset bubbles have not been completely lifted till now.As an important pillar of economic growth,to guard against real estate risks and keep the steady and healthy development of the real estate market is of great significance to the national financial stability and people's well-being.The Central Economic Work Conference puts forward the position of "insisting that the house is used for living,not for frying",and vigorously promote the development of housing rental market,the introduction of real estate tax and all levels of control policies at the same time.Environmental policy leads to market change,in order to maintain the advantage in the fierce competition,On the one hand,some enterprises have responded to the New deal in that they actively joined the real estate leasing market,such as Vanke's Park,Longhu's Crown.Furthermore,they strive to open up new areas of business,such as Vanke's logistics real estate,Green town and so on.On the other hand,a number of real estate is speeding up the pace of mergers and acquisitions in order to achieve the curve overtaking.According to statistics,36 real estate companies have disclosed restructuring plans this year,involving an amount of 56.5 billion yuan,with an increase of 12.98%.The real estate enterprise are facing a higher requirements of their cash flow and internal control.In addition,despite the difficulties of financing under the regulatory policy,state-owned housing companies are still paying high prices for land.What is the characteristic of the state-owned enterprises to the cash holding level,this is another problem that we are concerned about.Besides,with the continuous improvement of internal control system,can it improve the efficiency of internal cash management ? What is the effect mechanism? Based on the empirical analysis of China's listed real estate enterprises,we try to further explore the relationship between cash flow and internal control,and we hope that we could provide real estate enterprises with theoretical guidance and methods for the effective construction of cash control and internal controls.The contents of this thesis are mainly divided into five chapters: the first chapter is the introduction,introducing the research background and significance of this thesis,and the necessity of the influence of internal control on cash holding in real estate enterprises,then it reviews the relevant literatures of domestic and foreign scholars,and puts forward the research objectives and methods,the research contents and the technical roadmap as well as the possible innovation points and research features.The second chapter is the basic part of relevant theory,which defines the related concepts of internal control and cash holding,and introduces the development of internal control as well as the classical theory of cash holding.The third part is the influence mechanism analysis.Starting from the present situation of real estate development,this part analyses and infers the research hypothesis from the angle of information asymmetry and agency problem,then constructs an appropriate research model.The fourth part is the empirical research on the Influence of Internal Control on the Level and Value of Cash Holdings of Listed real estate companies in China,which tests the hypothesis presented in this paper through the descriptive,correlation and linear regression analysis,the final results are summarized and analyzed in the end.The last part is the conclusion and prospect of the research,as well as the recommendations.This paper studies the relationship between internal control and cash holding level and value based on Chinese real estate listed enterprises.The results are as follows:(1)Compared with other industries,the cash holding level of real estate enterprise is low(downward deviation from the optimal holding level),there is a big promotion space for the internal control level;(2)Internal control is an important factor that affects the level of cash holding which is in a balanced state.As other conditions are established,when the quality of internal control is higher,the real estate enterprises tend to maintain a relatively higher level of cash holdings and obtain liquidity benefits from them;(3)The internal control of China's real estate listed enterprises has positive influence on the value of cash holding,and can further improve the value of enterprises;(4)Compared with non-state-owned enterprises,the positive influence of internal control of state-owned real estate enterprises on cash holding value is more significant,this paper explores the Influence of Internal Control on the Level and Value of Cash Holdings of listed real estate companies.Based on the empirical analysis,the author puts forward some practical suggestions,hoping to provide scientific theoretical guidance and method guidance for the effective construction of cash control and internal controls of listed real estate enterprises in China.