Risk Management and Value of the Real Estate Corporation

Land is a non-renewable resource. Risks are complex and multiple for real estate corporations in the development of a market economy. At present, management failures of the real estate corporations are very common. Risk management of the real estate corporation is paid more and more attention by enterprises, investors, supervising organs, rating agency, stock exchange, agency investors, as well as other interest parties. This paper first studies the relationship between risk management and corporate value in real estate corporations. It will then be used to measure the contribution of risk management to the corporate value. Also, the linkage between risk management and the corporate value will be discussed based on agency cost and system factors. In the end, differences of risk management in different corporations will be studied, and the main factors for these differences will be identified.