The Study Based On The Impact Of Financing Structure In Supply Chain Over Working Capital Efficiency In Real Estate Enterprises

With the deepening of market regulation policies, from the beginning of2012,the real estate industry is facing serious internal and external environment. From thedomestic situation, the domestic product at factor cost continued to rise, the lack ofconsumer confidence, GDP growth continued to slow down (the third quarter of2012even fell to7.4%), and the severity of the situation of the domestic real estate industrywas more than expected. Accordingly, the external environment of the real estateindustry is not optimistic, from the external environment, the European debt crisisconstantly repeated, the U.S. economic growth slowly, in most emerging markets,economic growth slowed down or remain low run, the global economic slowdown. Severe internal and external environment is a huge challenge for the real estateindustry in2013. This paper argues that, under severe internal and externalenvironment as a capital-intensive real estate industry, the primary task is to ensurethat the working capital needed for day-to-day operation of the industry, to ensure thenormal operation of the capital chain, we can ensure that the real estate business tosurvive in the property market crisis. Conversely, the lack of liquidity in the marketand downturn in the property market turnover is always the case, once the capitalchain rupture, real estate enterprises is an inevitable risk of bankruptcy.Due to the recent domestic policy situation uncertainty, the national “credit limitorder "is still in force, the loan market has become more cautious, Bank financing ofthe real estate companies are subject to greater impact, limited bank financing forcedreal estate companies to find new ways of financing, the supply chain financing hasbecome a new channel of real estate corporate finance. In the case of the current lackof liquidity in the market, real estate enterprise supply chain finance is very necessary. The author browsing previous literature found many articles said that the workingcapital management must be in the perspective of supply chain, but rarely impact ofcorporate working capital efficiency for supply chain financing. This article will studythe impact of the supply chain finance over working capital item in the real estateenterprise; design indicators which measure supply chain financing structure affectthe efficiency of working capital turnover, and use of empirical models to explore theimpact of supply chain financing structure of the real estate business working capitalefficiency.This article design three impact indicators measure the efficiency that financingstructure of the supply chain affect working capital turnover. Namely: Creditdependence of the supply chain、Occupancy funds of the vendor、Dependence of commercial credit. In this paper, Eviews software is used to began a empiricalanalysis of real estate development enterprises in China in2011listed98sample data, used to verify the effect of the financing structure of the supply chain efficiency ofworking capital turnover, empirical model argument is: Credit dependence of thesupply chain、Occupancy funds of the vendor、Dependence of commercial credit. Model the dependent variable is the efficiency of working capital turnover inoperating activities. And added control variables: Short-term borrowings dependenceand Inventory turnover rate, soon after, this article began a descriptive analysis aim tothe dependent variable、the independent variables and the control variables. Then thispaper began a regression model analysis, the results show that the empirical modelhas a good fit, and came to the conclusion the following conclusions:(A) Creditdependence of the supply chain negatively related to working capital turnover rate inoperating activities.(B) Occupancy funds of the vendor negatively related to workingcapital turnover rate in operating activities.(C) Dependence of commercial creditpositively related to working capital turnover rate in operating activities.(D)Short-term borrowings dependence negatively related to working capital turnover ratein operating activities.(E) Inventory turnover rate positively related to workingcapital turnover rate in operating activities. Finally, based on the results of theempirical research, this paper presents the recommendations to improve the efficiencyof working capital turnover in the real estate industry.