An Empirical Study On The Relationship Between Governance Structure And Financial Risk Of Real Estate Listed Companies In China

All the time,the real estate industry is considered to be the pillar industry of China's economy.From a macro view,since 2000,with the gradual strengthening of the real estate market in China,the real estate market also led to the steady rising of upstream and downstream industry.But,in recent years,the rapid growth and juvenility of China's real estate market has led to the rapid growth of housing price.Since 2014,China has gradually liberalized the housing purchase policy.In 2015 and 2016,the new policy of the reduction of interest,RRR,tax reduction,optimization of land supply structure has been introduced.Due to the population turning point has arised,it is predicted that the financial pressure and the inventory pressure has been overcharged.From a micro view,the battle of Vanke(SZ000002)'s stock between "Zhenghua Yao" and "Shi Wang" has attracted our great attention in 2016,which has been the classic case in our capital market.Such case has revealed the great importance of governance structure of the company.This paper studied the real estate enterprises ' internal governance structure of controlling the financial risk.The whole paper is divided into five chapters:In the first part,this paper started with our country real estate market present situation,discussing the necessity of studying the real estate listed corporate governance structure and financial risk prevention,and then explored the analysis of the existing theoretical and realistic significance.The second part of paper concluded the relevance of domestic and international corporate governance and financial risk.This part found that the theories foreign scholars of corporate governance structure and the financial risk studied the correlation with practice closely.Part of the field has given rise to the emergence of new theories.Chinese scholars seldom contacted them with practice.This parts concluded the domestic and foreign theories of corporate governance and financial risk in sequence,and pave the way for empirical study.The third part described the actual situation of China's real estate industry through the status quo of the Real Estate Company governance and China's real estate industry financial risk of internal and external causes.And then,this part studied the status quo of the Real Estate Company,based on policy influence.The fourth part is the empirical research part of this paper.Based on the theoretical analysis and assumptions of the previous study,the author selected real estate Corporation through 10 years of data for empirical testing.Through descriptive statistics,correlation analysis,robustness analysis,the consequence of empirical research revealed that the improving of our real estate company structure surely will reduce the financial risks.According empirical test results obtaining in the fourth part,the fifth part mainly put forward the conclusion:.If the real estate enterprises in our country aims to prevent the financial risk,the companies should constantly improve the company's board of directors system,select appropriate members of board of directors,optimize equity structure,establish good executive incentive mechanism.The innovation of this paper is illustrated from two aspects:I.From the perspective of theoretical research on corporate governance and financial risk,this paper studied and analyzed the correlation between corporate governance and financial risk of real estate companies in China II.On variable selection,this paper added macro variables in the study of the relationship between the selection of loan interest rate and land supply as macroeconomic control variables,studied the correlation between the real estate enterprise governance structure and financial risk.