The Research On Follow-up Investment System For YE Company

In recent years,the real estate industry is facing increasing internal and external operating pressure.In order to control agency costs and strengthen incentives,the industry spawned the incentive system of Follow-Up Investment System.By establishing a profit-sharing system combined with the project,the Follow-Up Investment System enables employees to actively and deeply participate in the project operation,improve project marketing ability,strengthen project cost control and cycle control,and give stronger impetus to the virtuous cycle of real estate enterprises.Taking YE Company as a case,this paper analyzes the implementation effect of Follow-Up Investment System from the overall level and project level.At the whole level,the impact of financial performance and non-financial performance are analyzed.Among them,when analyzing the influence of financial performance,the influence of the Follow-Up Investment System on the company’s overall operating performance is analyzed from the aspects of profitability,operation capacity,debt paying ability and growth capacity,etc.,while the influence of non-financial performance is analyzed from the aspects of industry competitiveness and labor efficiency.At the project level,the differences of management’s follow-investment behaviors are firstly analyzed,including project selection and follow-up investment amount and the connection between the investment and management behavior.Secondly,this paper analyzes the comparison of positive cash flow cycle,cost optimization ability,cost control ability,profitability and internal rate of return among projects,and summarizes the implementation effect of the Follow-Up Investment System.Finally,sensitivity analysis is used to explore the degree of influence of each factor on the internal rate of return.Combined with the above analysis,reasonable suggestions are put forward from the aspects of follow-up investment rules,process management optimization and legal compliance treatment.By analyzing the implementation effect of the Follow-Up Investment System of YE Company,this paper summarizes the problems exposed in the implementation process of the current Follow-Up Investment System,and puts forward reasonable optimization suggestions for YE Company based on the focus direction of current real estate enterprises,providing reference value for other peer enterprises.