Research On The Influence Of Diversified Development Of Real Estate Enterprises

As the country's macro policy specific regulation of the real estate industry,real estate industry development history,market situation and competitive landscape radically change,prompted the real estate enterprises in our country through diversified seek breakthrough,contrarian corner overtaking,achieve the growth of the enterprise's financial performance and the value of the enterprise.However,is this cross-boundary diversified operation really like the initial willingness of enterprises to realize the continuous growth of financial performance?By reading lots of literature and data,the writer found that the current study diversified financial performance mainly concentrated in the empirical study of large sample,due to the large sample empirical research on macroscopic,deep-seated problems lack of in-depth analysis of the specific case.Therefore,this article through previous research form,adopt the method of case study in-depth discussion on this issue,combining normative research and comparative study method for the case enterprise find out problems in the process of diversification,and the analysis of the effect of diversified management of enterprise financial performance.in order to mining valuable information from the case study,provide a reference for mainland real estate enterprises bigger.This article first to the diversification and the theory foundation of financial performance and financial performance of diversified combing and summarizing the related literature,the second for Evergrande group and diversified background,the basic situation of the current financial status and group is introduced.Then,after analyzing the financial performance of the case company from the perspective of financial indicators and enterprise value,the financial performance of the group has been reduced in different degrees.Meanwhile,dupont analysis was used to analyze the profitability,operation ability and growth of Evergrande group.Diversified business of evergrande group of negative contribution to lower the overall return on equity,at the same time,using the method of serial alternative analysis group,the increase of revenue growth and asset do not match,leading to evergrande group total assets return rate reduced.By analyzing the growth capacity of Evergrande group,it is estimated that Evergrande group's non-real estate business has negative influence on the group's net profit.By analyzing the operation capacity of Evergrande group,it is found that the dependence of diversified businesses on related parties will reduce the group's receivables turnover rate,thus affecting the cash flow of real estate business.To sum up,this paper considers that the non-related diversification of Evergrande group has a negative impact on the financial performance of the group.At the same time,the following Suggestions are made:enterprises should develop diversified businesses,besides giving full play to their resource advantages,they should also give consideration to the synergies of each business.In addition,diversification must stabilize cash flow,which can not hinder the healthy development of the main industry.The research of this paper can provide reference for other real estate companies to develop diversification strategy,and also has positive significance to promote the development of real estate industry.