Research On The Influence Factors Of Financial Risks In Real Estate Listed Corporations

Real estate industry develops rapidly over nearly 30 years in our country and becomes an important pillar industry. However, with the rapid development of industry and the market "bubble" intensifies, the financial risk of real estate industry has attracted more and more attention. Financial risk is the important issue which we must face in the process of risk management in enterprise, it not only relates to the sustainability of the development of the enterprise, but also indirectly affects the interests of investors and creditors, etc. Ineffectively financial risk control may lead to serious financial crisis, eventually lead to bankruptcy, and it also will have an impact on the economic stability of countries and regions. Recently, studies on the influence factors and control of the financial risks have been hot issues in the academic research. In this paper, drawing from the basic theory of financial risk, we system analyze the influence factors of financial risk in real estate listed companies, and has carried on the empirical analysis to test hypothesis, then put forward the control measures according to the results of the study. Thus, the research on the antecedents of financial risk and the measures puts forward to control the financial risk are significant for managers, investors and the government.This paper contains six parts. The first part is the introduction. This part summarizes the research background and research significance, the domestic and foreign scholars on issues related to research dynamic, research ideas and methods and research innovation and inadequate. The second part is the theory and the definition of relevant concepts. Basic theories of this paper include principal-agent theory, the risk control theory and the economics theory. The third part mainly introduces the current financial risk of real estate listed corporations, basing on the theoretical analysis of the financial risk influence factors, this paper put forward the hypothesis. The forth part is the empirical analysis.In this paper, the main source of the data is from a-share market listed real estate companies’ annual report from 2009 to 2013 in China’s Shanghai and Shenzhen two Stock Exchanges. Using a Z-score as a measure of financial risk indicators, by descriptive statistics with SAS and regression analysis with EVIEWS, the paper examined the correlations of external industry control policies, industry characteristics, governance structure and enterprise financial risk through the statistical analysis method. The last part summarizes the research conclusions, and put forward some suggestions to control the financial risk of real estate listed corporations according to the theoretical analysis and empirical results in the previous, then put out the further research prospects. Studies suggest that companies should concerned about the changes of macroeconomic industry control policies, increase the asset turnover,improve the governance structure, put into effect the internal control system, so that it can play a good role in the enterprise financial risk control.Based on the theory of risk management, financial management theory and economics theory, we systematically analyze the impact of related factors on the financial risk in real estate companies. On the basis of theoretical analysis and empirical analysis of the influence factors of financial risk in real estate listed corporations, we enrich the empirical study of the correlation among the relevant macroeconomic control policies, industry characteristics, capital structure and financial risk, makes research more realistic significance and reflects the certain innovation.