Research On The Impact Of Financial Elasticity Of The Real Estate Industry On Corporate Value

With various risks and uncertainties increasing,more and more enterprises are putting the management of capital flow in an important position to maintain financial flexibility,so as to prevent the risks of changes in the external environment and seize investment opportunities to achieve their own development goals.Under the dual role of economic globalization,new investment opportunities and increased environmental uncertainty,maintaining financial flexibility will help companies to make more positive financial decisions,so that companies will not be in a more passive position.As a pillar industry of the national economy,the real estate industry is of great significance to the sustained and stable development of the national economy and the transformation and upgrading of the economy.However,in recent years,the asset-liability ratio of the real estate industry has increased year by year,and the interest-bearing debt ratio has also shown an upward trend.Once the capital chain breaks,the pressure on real estate companies to repay debts will further increase,and the real estate enterprises may fall into the financial crisis.Under the circumstances of increasing uncertainty,how to improve risk response capability and seize investment opportunities to achieve corporate value has become a key issue for real estate enterprises.Therefore,starting from the specific situation of China's real estate industry,this paper studies the impact of financial flexibility of real estate industry on corporate value.This paper defines the connotation and concept of financial flexibility and enterprise value on the basis of relevant literature at home and abroad.Based on the free cash flow hypothesis,pecking order financing theory,financing constraints hypothesis and real option theory,it deeply analyses the influence mechanism of financial flexibility on enterprise value from the aspects of cash holding,financing ability and investment.Then,the current situation of financial flexibility in real estate industry is analyzed.It is found that there are some problems in financial flexibility in real estate industry,such as insufficient cash holding and low reserve of unused debt financing ability.This paper chooses 86 real estate listed companies listed in Shanghai and Shenzhen from 2012 to 2017 as samples,puts forward research hypothesis on the basis of theoretical analysis,and then selects indicators from cash holdings and cash flows,debt financing ability,equity financing ability,etc.,considering the impact of spontaneous current liabilities and combining the characteristics of the real estate industry,optimizes the financial flexibility index system.The financial flexibility index is constructed by factor analysis.Finally,a regression model is constructed to test the impact of financial flexibility of real estate industry on enterprise value.The empirical results show that there is a positive correlation between financial flexibility and corporate value of real estate listed companies in China.Maintaining financial flexibility can promote the value of real estate enterprises.The grouping test on the level of financial flexibility shows that the holding of low financial flexibility can promote the value of real estate enterlprises to a certain extent;however,the positive effect of financial flexibility at the medium level on the value of enterprises is significantly higher than that of low financial flexibility on the value of enterprises;high financial flexibility has no significant impact on corporate value;considering the impact of different levels of financial flexibility on corporate value,medium financial flexibility has a greater positive impact on corporate value.Real estate enterprises should keep financial flexibility at a moderate level.Grouping tests on growth show that for real estate enterprises with good growth,maintaining financial flexibility is more conducive to promoting the development of enterprises and enhancing the value of enterprises.In view of the financial flexibility of the real estate industry discovered by the research,this paper combines the empirical research results and the real estate industry's own situation,and proposes countermeasures to optimize the financial flexibility of the real estate industry,so that real estate enterprises can find effective ways to be more conducive to the sustainable development of their own enterprises,and then promote the improvement of the value of real estate enterprises and the healthy development of the real estate industry.