Research On Financial Risk Of Real Estate Enterprises Based On Z-Score Model

The real estate industry,which is closely related to us,has developed rapidly in recent years and can affect the rise and fall of many other industries.Therefore,the real estate industry has become a pillar industry affecting the national economy and has a significant impact on people's livelihood.For a long time,although the real estate industry has a large demand for capital and a long payback period,it also has a very rich profit,which attracts many enterprises to participate in the real estate industry.From 1998,the number of real estate enterprises in China has increased to 24 378,reaching 94 948 in16 years.In 14 years,the number of Housing enterprises increased by 70,570,an annual compound growth of 11%.In addition,over the years,with the rising housing prices,the happiness of residents is declining,intensifying the contradiction.Moreover,the real estate industry has seriously kidnapped the healthy development of China's economy,so the state should constantly strengthen the risk control of real estate enterprises,control the brutal expansion of real estate enterprises,and prevent the occurrence of financial risks.Because the financial risk of real estate enterprises is not only closely related to their own safety,but also involves many related upstream and downstream companies and industries,involving a wide range of areas,affecting many.Therefore,we need to establish and improve the financial risk identification system,financial risk prevention system,and post-emergency disposal system to reduce the possibility of risk occurrence and loss.Moreover,how to correct the mistakes and improve the financial situation of real estate enterprises after financial risks occur,and how to maintain healthy and stable development in the future development process also requires us to increase our research in this area.It is hoped that this study can provide some enlightenment for real estate enterprises to establish and improve financial risk early warning system and how to control financial risk.This paper makes a comprehensive and in-depth analysis of how to prevent the financial risk of real estate enterprises by using the methods of literature search and case study.Firstly,this paper introduces the process of Z model deduction,and then uses SPSS software to deduce Z model suitable for China's real estate enterprises.Next,we select Biguiyuan as a case study object to study,and bring the financial data of Biguiyuan intothe derived model,so as to judge whether the financial system of Biguiyuan is safe or not,and whether there are hidden dangers.Then we evaluate the current situation of the financial system of Biguiyuan from the qualitative aspect,and summarize several problems according to the current situation of Biguiyuan.Then we put forward corresponding measures to improve the existing problems.Through the analysis,we can draw the following conclusions: the Z model can be used to analyze the financial risk of real estate enterprises;the financial system of Biguiyuan has high risks,and Biguiyuan should strengthen the establishment and improvement of its financial risk early warning system;the leverage ratio of Biguiyuan is too high,the sources of funds rely too heavily on debt financing,and the financing channels are not diversified enough.We should enhance the adaptability of Biguiyuan to the external environment,improve the financing channels,plan investment projects rationally and improve the financial risk early warning system.