The Research of Financial Risk Warning Model about Real Estate Enterprises in China

Abstract

With the establishment of large-scale real estate enterprises, the competition is increasing among real estate enterprises, which requires real estate companies to enhance crisis prevention awareness. In the paper a combination of qualitative and quantitative method is used aiming at certain risks that real estate enterprises are facing with. The article introduces the capacity of external financing in time, Eva, cash flow, board size, the scale of supervisor board and other new indicators to establish a new system of early warning indicators. The article provides empirical study from the perspective of early warning system of real estate generation enterprise using comprehensive evaluation model. It is more accurate to predict financial risk for real estate enterprises based on the qualitative method with quantitative method.