Financial Stress Testing of Real Estate Enterprise

DOI

10.2991/iccese-18.2018.192How to use a DOI?

Keywords

real estate enterprise; financial pressure; stress testing

Abstract

In this paper, we choose “Stress Testing", which is widely used in the financial field, to analyze the risk pressure of the real estate industry. The real estate industry's pressure factors are divided into internal and external factors. Internal factors mainly reflect the enterprise inventory turnover, liquidity and solvency; the external factors are mainly macro-economic data indicators. The study found that inventory turnover rate and quick ratio have impact on the real estate business cash flow; both respectively represent the liquidity pressure and debt service pressure. In the external factors, the loan interest rate and the real estate industry boom index have influence on inventory turnover rate and quick ratio. Hence, it can be concluded: Real estate enterprises have liquidity pressure and debt service pressure, and the external macroeconomic factors, such as loan interest rates and real estate industry boom index, indirectly affect the real estate business operation.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yao Long
PY  - 2018/03
DA  - 2018/03
TI  - Financial Stress Testing of Real Estate Enterprise
BT  - Proceedings of the 2nd International Conference on Culture, Education and Economic Development of Modern Society (ICCESE 2018)
PB  - Atlantis Press
SP  - 839
EP  - 841
SN  - 2352-5398
UR  - https://doi.org/10.2991/iccese-18.2018.192
DO  - 10.2991/iccese-18.2018.192
ID  - Long2018/03
ER  -