Research On The Follow-up Investment System In The Real Estate Industry

The big environment of the real estate industry is always changing and confusing.In the past decade,real estate companies have experienced both prosperous days and tough time.Many real estate companies always expect a favorable environment to earn much money easily.They do not aware that the long-term stable development of the company depends on continuous innovation and improvement at the micro level.All along the way,the problems of inefficient management mechanism and talent loss of real estate companies have seriously restricted the development of this industry.Especially when the market environment is in a downturn,relying on the policies often brings unimaginable difficulties to real estate enterprises.To overcome this problem,some companies with long-term vision have begun to make some changes,and follow-up investment system have also emerged.The investment-incentive system with benefit-sharing as the core has brought new vitality and vitality to real estate enterprises,and has been widely adopted so far.However,due to the implementation of the system occurred just at a few years ago,and it is still not perfect at present,so study on the follow-up investment system through case analysis has great theoretical and practical significance.Among numerous of real estate enterprises,Country Garden is the leader in implementing the follow-up investment system.In our study,the author has extensively reviewed the implementation materials of the follow-up investment system of several famous real estate enterprises such as Vanke and Country Garden,and then analyzed the follow-up investment system of real estate industry.This study especially investigated the specific deployment of the follow-up investment system of Country Garden,and compared it's the special features with other real estate companies.This study analyzed changes of financial indicators of companies before and after the follow-up investment system was employed and then made horizontal comparison with Vanke and average financial indicators of companies in real estate industry.The study employed more detailed analysis of the changes and advantages brought by the follow-up investment system to Country Garden,and then summarized the shortcomings of the investment system.Finally,systematic recommendations were put forward to perfect the follow-up investment system.Through case analysis,we concluded that the follow-up investment system can bring many advantages to real estate enterprises.It could enhance the profitability of enterprises,more effectively control enterprise investment risks,and enhance the stability of management team.However,it could also increase financial burden of employees who take part in the follow-up investment,increase financial risks of company and lengthen the capital recovery period.In order to effectively deal with these risks,efforts should be made to build a more transparent and supervised follow-up investment mechanism.