Research On Financial Slack Management Of WL Real Estate Company

The real estate industry is a pillar industry in the development of our national economy.It is also the main driving force for the rapid growth of China's GDP.But,the real estate bubble is getting worse and worse.For this problem,the government has taken the frequent and strict supervision of the real estate industry by means of the real estate market regulation and monetary policy.In addition to the pressure of external policies,the competition among industries has become more intense with the development of the national economy.Therefore,the living environment of the real estate industry is getting worse.Now,in a business environment full of uncertainty,enterprises must keep abundant resources and adjust their business strategies timely so that they can cope with unknown risks and enhance their competitive advantages.This requires that the enterprise financial system,which is an important subsystem in an enterprise system,must have the financial slack,financial slack is the least amount of financial resources needed beyond the day-to-day operations of the business.Financial slack enables enterprises to calmly deal with the unfavorable impact of the drastic changes in the environment on business,and makes flexible strategic plans to enhancing their competitive advantages.Based on this realistic background,enterprise financial slack is widely concerned and valued.This article chooses WL Corporation,the leader of real estate industry in our country,as the research object,and studies the financial slack management of WL Company by case study method.The existing research shows that financial slack has two positive and negative impacts on the corporate value.The positive impact mainly arises from the financial slack's improvement of corporate risk and competitive advantage.The negative impact mainly comes from the principal-agent problem.Due to the relatively sound enterprise system of the enterprises studied in this paper and the concept of financial slack formed by the enterprises,financial slack has an active role in the case enterprises.After studying and analyzing the case enterprises,this paper finds that the financial slack in the case enterprises is managed to help improve the enterprise value.First of all,starting with the two motives of financial slack management,namely risk defense and competitive advantage,this paper combines the development cycle and strategic layout of WL Company,and focuses on two different financial slack management models of WL Company in different periods.WL companies in different factors driven by financial slack management mode for analysis.Through the research on the mechanism and specific implementation measures of two financial slack management modes of WL Company,this paper summarizes the applicability of different financial slack management modes,provides reference and reference for the financial slack management activities of similar enterprises,Enterprises should make timely financial reserves for the reserve and effective management,and thus contribute to the value of the enterprise.Through the case study of the way of financial slack management,this article attempts to provide reference for the healthy and sustainable development of real estate enterprises in the real estate industry under the background of harsh environment.