| With the continuous tightening of financing policies in the real estate industry,the financing of real estate enterprises has become a hot topic of social concern since2016.Restricting the financing of real estate enterprises is an important part of the real estate regulation policy,reflecting the determination of regulators to curb the real estate bubble and guard against systemic financial risks.In this context,a considerable number of real estate enterprises have high financing costs and debt pressure,which seriously affect the survival and development of enterprises.According to wind statistics,the default scale of credit bonds of China’s real estate enterprises has increased from 3.5 billion yuan in 2018 to 22.2 billion yuan in 2020,with an average annual growth rate of more than 260%.The financial crisis of these enterprises is not only affected by the change of external environment,but also the problem of their own business strategy.Throughout the current crisis of real estate enterprises,there are "barbaric growth" in common-through unreasonable and beyond the enterprise’s ability to bear the scale of debt to expand the market,bigger assets.When the scale of internal and external financing is unsustainable,enterprises are bound to have a crisis.Of course,there are also some enterprises,through their own stable business strategy,in the case of deteriorating external environment,to achieve the "double harvest" of asset size and profit level.The reason is to pay attention to the financial flexible reserve in the daily business activities,so that in the face of uncertainty environment,it can play the function of "defense" and "utilization" of financial flexibility,turn the crisis into safety,and realize income.Therefore,it is of great value to study the financial flexibility of real estate enterprises for their healthy development.Taking Poly Development as a case study,this paper focuses on its financial flexibility,the causes of financial flexibility changes and the impact of financial flexibility changes on enterprises.On the basis of summarizing the previous studies,this paper uses dynamic capability theory,financing priority theory,trade-off theory and real option theory to explain the impact of financial flexibility on enterprise development and its path.Firstly,this paper analyzes the macro environment of China’s real estate enterprises and the operating conditions of Poly Development,and expounds the reasons for case selection.From 2015 to 2019,the macro environment of China’s real estate industry is not conducive to the development of enterprises.At the same time,the operating condition of Poly Development is improving.How to use financial flexibility to improve the operating condition of Poly Development is worth exploring.On the basis of previous studies,this paper summarizes the path of enterprise financial activities on financial flexibility.Secondly,this paper evaluates the financial flexibility of Poly Development by using single index method and multi-index comprehensive method.The single index method uses the method including cash ratio and asset liability ratio proposed by Zeng Aimin(2011).Taking Ma Chunai’s(2010)research as the main body,this paper constructs the evaluation system of Poly Development’s financial flexibility,and uses the Entropy-TOPSIS method to measure its financial flexibility.The results of the two methods are basically the same,which fully verifies the conclusion that the financial flexibility of Poly Development continues to rise.Secondly,this paper analyzes the reasons for the rise of financial flexibility of Poly Development from four dimensions of financing,investment,operation and distribution.This paper holds that: from the perspective of financing,strong unused debt financing ability,steadily rising dividend payment level,gradually reducing financing cost and multi-channel financing means are the main reasons for the rise of financial flexibility of Poly Development;from the perspective of investment,low investment expenditure and low diversified operation level are the main reasons for its financial flexibility From the perspective of operation,the main reasons for improving the financial flexibility of poly are stable inventory turnover level,gradually improved accounts receivable turnover level,higher cash holding level,reasonable debt maturity arrangement and good internal capital market operation;From the perspective of distribution,the higher level of retained earnings ensures sufficient internal capital accumulation,which is the key factor for the rise of financial flexibility of Poly Development.The four dimensions work together to improve the financial flexibility level of Poly Development.Finally,this paper further studies the impact of the rising financial flexibility of Poly Development on enterprise development.Using the financing constraint model proposed by Li Yan(2008),this paper finds that the rise of financial flexibility of Poly Development effectively alleviates the financing constraint of enterprises;through the static optimal capital structure model proposed by Meng Jianbo and Luo Lin(2010),this paper finds that the rise of financial flexibility of Poly Development effectively optimizes the capital structure of enterprises;after calculating the economic growth of Poly Development from 2015 to 2019.This paper finds that the rise of financial flexibility of Poly Development increases the value of the enterprise;through the use of Van Horn dynamic model,this paper finds that the rise of financial flexibility of Poly Development effectively enhances the sustainable growth ability of the enterprise;by using the indicators of management expense rate and total asset turnover rate,this paper analyzes the correlation between the agency cost of Poly Development and the financial flexibility of the enterprise,and finds that the financial flexibility of Poly Development is closely related At the same time,it also increases the agency cost of enterprises.Through the above research conclusion,the paper draws the following suggestions:(1)The real estate enterprises should pay attention to and strengthen the financial flexible reserve,and the main methods are to hold a certain scale of cash assets,control the scale of liabilities,reasonably arrange the debt term structure and expand financing channels.(2)Real estate enterprises should adopt the strategy of moderate diversification to avoid excessive consumption of financial flexible reserve of enterprises.(3)Real estate enterprises should guard against agency problems while improving financial flexibility. |
