Author(s)

Yaning Yang ¹

Affiliation(s)

¹ School of Mathematics, Southwestern University of Finance and Economics, Chengdu, 611130, China

Corresponding Author

Yaning Yang

ABSTRACT

At present, the real estate industry, as a pillar industry concerning the national economy and people's livelihood, has a greater impact on the national economic development, especially in recent years, economic development has been affected in many ways, and the financing redevelopment of the real estate industry has also been focused on, so it is necessary to carry out a focused research work on the study of the financing decision of the real estate industry in order to guarantee the sustainable and healthy development of the real estate industry. Scholars have conducted a large number of studies on the financing decisions of real estate enterprises in different periods, but the financing decisions under the specific background of deflation have not yet formed a targeted guiding theory, therefore, it is important to have a theoretical guiding significance to effectively predict the financing strategy of the later development through data analysis and mining. This paper collects the financial data of seven property companies in the past ten years, and applies the DCF valuation method and perpetual growth model to predict the future value of the enterprises in the next five years. It is found that the calculation results of the future value of the enterprises appear to be very different due to the different operating conditions of the enterprises. By comparing the changes in the future value of the company under the typical WACC, it is concluded that the company should focus on the impact of WACC on the company's future value. Based on the valuation results, combined with the national policy and the actual situation of different enterprises, this paper provides professional analysis on the financing decision of real estate enterprises based on the changes in the financing structure of the real estate industry in recent years, and puts forward scientific suggestions for financing decisions.

KEYWORDS

Property Enterprises, Financing Decision, Valuation

CITE THIS PAPER

Yaning Yang, Financing Decisions of Property Enterprises under Deflation—A Case Study of 7 Hong Kong Stock Companies. Accounting, Auditing and Finance (2023) Vol. 4: 37-45. DOI: http://dx.doi.org/10.23977/accaf.2023.040307.

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