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Analysis on Financial Risk Management of China Evergrande Group

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DOI: 10.23977/accaf.2023.040105 | Downloads: 316 | Views: 1491

Author(s)

Boya Zhao 1

Affiliation(s)

1 School of Accounting, Guangzhou College of Commerce, Guangzhou, 511363, China

Corresponding Author

Boya Zhao

ABSTRACT

Financial risk management is very important in the financial management of enterprises. Financial risk management in the real estate industry is related to the development and survival of enterprises. However, my country's financial risk management system is not perfect. This investigation report takes the financial risk management of Evergrande Group as the starting point, briefly introduces its characteristics, and details the current situation and causes of Evergrande Group's financial risk management around it. Then, through the analysis of the cash flow of Evergrande's financial statements and the analysis of various financial indicators, it describes in detail the financial risk problems that China Evergrande Group has recently existed, and studies the causes of the existing problems. This report also puts forward corresponding suggestions: improve the solvency and rational use of funds. Strengthen cost control and control cost budget. Establish a scientific and sound financial risk management system, use financial indicators in various aspects to carry out financial risk early warning, and improve risk early warning capabilities. It is hoped that these suggestions can provide reference for the healthy and sustainable development of the financial risk management of real estate enterprises.

KEYWORDS

Financial risk management, financial risk, China Evergrande Group, financial indicators

CITE THIS PAPER

Boya Zhao, Analysis on Financial Risk Management of China Evergrande Group. Accounting, Auditing and Finance (2023) Vol. 4: 31-38. DOI: http://dx.doi.org/10.23977/accaf.2023.040105.

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