Advances in Economics, Management and Political Sciences

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Proceedings of the 7th International Conference on Economic Management and Green Development

Series Vol. 39 , 10 November 2023


Open Access | Article

Empirical Analysis of Vanke Enterprise Financial Risk Model Based on Factor Analysis Method

Yaoxiang Lei * 1
1 Zhejiang University of Technology

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 39, 153-160
Published 10 November 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Yaoxiang Lei. Empirical Analysis of Vanke Enterprise Financial Risk Model Based on Factor Analysis Method. AEMPS (2023) Vol. 39: 153-160. DOI: 10.54254/2754-1169/39/20231956.

Abstract

As the world’s economic recovery faces multiple pressures, the development of some enterprises has been impacted or even closed down. In particular, real estate enterprises are facing enormous competitive pressure and financial risks. Therefore, it is very necessary to establish a financial risk evaluation system for real estate enterprises. This paper establishes a risk evaluation system for the real estate industry, taking Vanke Enterprise as an example, using the factor analysis method and makes risk predictions for the whole finance. This paper collects 19 years’ worth of financial data from Vanke enterprises, uses the factor analysis method to analyze four parts of listed real estate companies’ solvency, profitability, operating capacity, and growth capacity, and establishes a risk warning model. The results show that the financial risk of Vanke enterprises has shown an obvious rising trend in recent years. Real estate enterprises need to adopt a variety of ways to raise funds, inject fresh blood, and meet their capital needs so as to reduce financial risk.

Keywords

real estate Enterprises, factor analysis, financial risk, risk assessment, financial indicators

References

1. Zhang Runjun & Xue Hanqing. Empirical analysis of financial risk model of listed companies based on factor analysis. Intelligent Computer and Applications (06), 64-68. (2018).

2. Regina Andekina, Rakhila Rakhmetova. Financial Quality Evaluation of Listed Companies Based on Factor Analysis Method. Applied Mechanics and Materials, (13) 2247-2251 (2013).

3. Milind Kumar Jha & K. Rangarajan. Analysis of corporate sustainability performance and corporate financial performance causal linkage in the Indian context [J]. Asian Journal of Sustainability and Social Responsibility, (20), 5(2). (2020).

4. Zhang Guofu, Qu Wencong & Song Zikang. A study on Vanke’s financial performance under asset-light operation mode. National Circulation Economy (31), 81-84. (2022).

5. Zhang Yujie. Research on Performance Evaluation of JY Real Estate Company Based on Factor Analysis (Master’s Thesis, Henan University of Science and Technology) (2022).

6. Mao xiaoli. Identification, prevention and control of financial risks in real estate enterprises. Enterprise Reform and Management (23), 120-121. (2020).

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8. Dong Yumin. Financial Risk Analysis of shipping enterprises based on Factor Analysis — taking SIPG Group as an example. Operation and Management.

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Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 7th International Conference on Economic Management and Green Development
ISBN (Print)
978-1-83558-099-8
ISBN (Online)
978-1-83558-100-1
Published Date
10 November 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/39/20231956
Copyright
© 2023 The Author(s)
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated