Research On Financial Crisis Warning Of Real Estate Listed Companies In China

In recent years, with the fast development of China’s economy and the increasing consumer demand for commercial housing, the growth rate of the real estate business is accelerating. However, the real estate enterprises of our country are serious shortage of own funds and most of them mainly depend on bank loans, facing tremendous financial risk. Therefore, it is improtant to establish a financial crisis early-warning model which can effectively prevent the occurrence of the financial crisis in the real estate business.Firstly, the paper reviews the relevant literature in this field and elaborates the theories of financial crisis early-warning. Secondly, the paper analyzes the manifestation and influencing factors of the financial crisis in the real estate industry. Thirdly, the paper selects 90 representative listed real estate companies as study samples and sorts out the financial data for the year 2009-2013. The paper selects 39 indexes through the significance test and factor analysis. Using the logistic regression analysis, the paper constructs a financial crisis early-warning model and tests the effect of the model. Finally, the paper makes some recommendations to prevent China’s real estate listed companies from the financial crisis based on the the analysis of the empirical results.