Study On Correlation Between Working Capital Management And Value Of Real Estate Enterprises In China

Confronting a series of new policy adjustments,real estate sector produces some new phenomenon.Therefore,working capital management is especially important for real estate companies to deal with these changes.Real estate companies feature a large amount of working capital,long range of turnover time,susceptibility to the policies and regions,which are dramatically different from other companies,highlighting the necessity of study on the working capital management in the new markets changes.In this paper,starting from the omni-channel working capital of the real estate sector,selecting the samples of 100 listed real estate companies,the relations between working capital performances and enterprises value will be studied by empirical analysis.The finding of the study is that there are negative correlations between three couples: working capital turnover period and real estate enterprises value,working capital turnover period of business activities and real estate enterprises value,working capital turnover period of finance activities and real estate enterprises value.Meanwhile,the concept of working capital is expanded by omni-channel theory and the turnover period of non-current assets for business activities is also studied which is negatively correlated with enterprises value.Last but not least,this paper puts forward some countermeasures and suggestions for improving the value of real estate enterprise in China.It is hoped that the relevant framework can provide new impetus for the development of real estate enterprises.