The Influence From Liquidity To Performance Of Real Estate Corporation

The health of the real estate industry, as one of the most widely influencing industry in China, makes vital sense for the development of economy and society. Meanwhile, real estate industry is a capital intensive industry. Its number of operating money is larger than other industries. Although real estate corporations operate such large number of money, their capital management skills are still needs to develop. Once capital problems occur in real estate, they will make heavily impact to the whole society. The major task of capital management of corporation is managing the liquidity of assets. The final object of a company is to maximize its profit. To maximize the profit, firm needs to invest its capital in the long-term asset which can bring high return. But a enterprise needs some current assets to ensure its daily operation. Thus, this dissertation is trying to study the correlation between corporation's profitability and liquidity, and to seek how the liquidity influences the profitability. This dissertation constitutes by six chapters. At first, we use normative approach to analyze the profitability and its indicators of Real Estate Corporation. Second, we analyze the liquidity and its indicators of Real Estate Company. Then we work out the correlation between the profitability and the liquidity of Real Estate Company based on the finance data of Chinese stock company. At last, we seek for the way to promote the liquidity of Real Estate Company using the conclusion from the positive approach.The first chapter is the introduction. It comprises the background and significance of the paper, the relevant research in China and foreign countries, the purpose, the content, the approach and route of the study.The second chapter looks for the effective indicators which represent the profitability of corporations through analyze the profit evaluate system.The third chapter discusses the liquidity of Real Estate Company, find out a series of indicators of the liquidity of Real Estate Company.The forth chapter is the emphasis of this dissertation. It uses positive approach to study the influence from liquidity indicators to the profitability indicators through the financial data. It takes the profitability indicators as dependent variables, the liquidity indicators as independent variables.The fifth chapter seeks potential approach to improve the liquidity of Real Estate Company based on the regression model. The sixth chapter is the conclusion of the dissertation, and prospects of potential future research directions.