Financial Strategy Of Listed Real Estate Companies

The real estate industry has become one of the important support for economic prosperity in many countries, so is China. China’s real estate industry has achieved rapid development since the1980s, also led to the rapid growth of the domestic economy. However, the real estate market gradually from the housing consumption-oriented market into a housing investment-led market in2003-2007, housing prices artificially high, the structure of a serious imbalance in the gradual accumulation of the real estate bubble, most of the national buy predicament, people can not afford so that housing problem has emerged as the national major issues, the CPC Central Committee and State Council has attracted much attention in recent years, such as "The introduction of the six countries ","The National10"," Housing the purchase of series of regulatory policies to curb house prices is growing fast. China’s natural population growth rate decreased and the second Five-Year Plan "to the real estate industry is removed from the pillar industries of the national economy, indicating the end of the rapid growth stage of the real estate industry, and gradually entered a recession; the same time, countries the implementation of a more severe and lasting regulation of the real estate market for real estate business, is even worse. In this context, the right financial strategy has important practical significance and practical value for real estate companies to smooth out and the healthy development of future long-term.In this paper, the industry life cycle theory and value creation/growth rate of matrix theory, starting from the industry, the environmental point of view and enterprise of their own status, formed a relatively complete set of real estate corporate finance strategic choice theory, to develop the right financial strategy for real estate companies provide a reference.This article is divided into seven chapters:Chapter Ⅰ:Introduction. Firstly account of the research background and purpose of the article; secondly section describes the idea of this study and the methods used; Finally, this innovation is located.Chapter Ⅱ:A Literature Review. This chapter focuses on domestic and foreign scholars on research done by the financial strategic management theory and life-cycle theory are summarized, and the value of this study.Chapter Ⅲ:Basic theory. This chapter lists the life cycle theory, and strategic financial management theory and value creation/growth rate of matrix theory, to lay a theoretical foundation for the later chapters.Chapter Ⅳ:The life cycle of the real estate industry. In this paper, the method of logical deduction, the life cycle of the real estate industry based on the population structure, fertility, mortality and other demographic factors; followed by the industrial policy to explore the real estate industry cycle; again based on the last two years of real estate regulation roots and continuity of policy on the real estate life cycle of the judgment, and ultimately come to this conclusion that the real estate industry has matured in the late stage and gradually entered a recession.Chapter Ⅴ:Listed real estate companies in a different quadrant to investigate the value creation/growth rate matrix. This chapter selected36listed real estate companies as a sample, respectively, according to sample the company’s returns on invested capital, the four indicators of the sustainable growth rate of sales growth and cost of capital rate to determine a sample of companies in the value creation/growth rate matrix different quadrants, of which laid the foundation to develop appropriate financial strategies for the real estate business for a different quadrant below.Chapter Ⅵ:Based on the real estate industry life cycle theory and value creation/growth rate of matrix theory to explore the real estate listed companies’ financial strategic choice. Based on the real estate industry is in the later stages of maturity in the life cycle theory, the listed real estate companies in the different quadrants, respectively, financing strategies, investment strategy and income distribution policy of a specific financial strategy development.Chapter Ⅶ:Research Summary and Outlook. A brief summary articles research and research content, and late further research outlook.The main innovation of this paper is:(A) Logical deduction combined with the data confirms. Firstly, use the method of logical deduction in the current stage of its life cycle of the real estate industry:the life cycle of the real estate industry based on demographic factors; secondly, followed by the industrial policy to explore the real estate industry cycle; thirdly, based on the real estate regulatory policies on the real estate life cycle judgment, concluded that the real estate industry has matured in the late stage and gradually entered a recession this conclusion. Also uses a statistical method, statistical analysis of the relevant financial indicators, confirms the above conclusion.(B) Combination of the industry environment and business situation. The one hand, discusses the current real estate industry in which the life cycle stages, from concept level to provide a basis for the choice of real estate corporate finance strategy. On the other hand, for each listed real estate companies in the value creation/growth matrix in which the different quadrants from the micro level to provide a reference for the choice of real estate corporate finance strategy, the real estate business financial strategy study.(C) The value creation/growth rate of matrix theory to practical application. Scholars study of value creation/growth rate matrix generally stay in the phase of theoretical research and real application, not in practice. This article bold attempt to apply the theory to determine the distribution of real estate listed companies in the matrix, and a viable financial strategy for the different quadrants of the listed real estate companies.(D) Strong timeliness. In the value creation/growth matrix study, the selected data sources are the2011annual report of the sample companies, can accurately reflect the current operating results and financial position of the sample companies, listed real estate companies to develop a financial strategy in the current environment provide timely, reliable reference.