Research On Management Of Financial Risks Of J Real Estate Company

With the rapid development of economy,the real estate industry has developed dramaticly in past two decades.Real estate industry is a typical capital-intensive industry with features of huge investments,long industrial-chain,large market scale,and contributed significantly to the economy growth.As a result of its financial nature,the real estate industry plays a key role in both stabilizing the financial system and managing systematic risks.New polices being introduced as the asset price bubbles kept been fueled have caused tremendous shocks to many real estate companies,resulting in the deviation of operating results from financial objectives and expected returns.Therefore,how to control financial risk reasonably and effectively has become a key issue for real estate enterprises.This paper is based on theories of financial risk and control,and takes the J Real Estate Company as an example to study through the appliance of analysis of financial statements,questionnaire,Efficacy Coefficient Method.This paper aims to put forward suggestions of improving financial risk control for J Real Estate Company and similar companies.Starting with the related theories,the paper introduces the operation and financial situation of Real Estate Company.Then the author analyses the current situation of the company's risk control and points out the problems in financial risk control.Selecting the main financial data of the J Real Estate Company from 2014 to 2018,the author identifies financial risks of the company,and evaluates financial risks by using the Efficacy Coefficient Method.The conclusion reached is the J Real Estate Company is faced with the clear signal of financial risks.In the end the author puts forward suggestions of improving financial risk control.The innovation of this paper is to study J Real Estate Company in the background of risk environment and the introduction of control group which enhance the conclusion.