Empirical Study on Financial Risk Evaluation of Real Estate Listed Companies

Subjective and objective weights of indexes are determined respectively by G1 and entropy methods in the paper, furthermore, optimal weight is determined based on the Combination Weighting Method by minimizing the summary of the square of deviation. Finally, construct the financial risk evaluation model applied to the real estate and rank the order of related companies according to the comprehensive risk value. Contributions of this paper lie in three aspects: Firstly, the established financial risk evaluation index system overcomes the shortcomings of the existing one in indexes´ calculating. Secondly, the growth rate and cash inflows indexes are included in the appraisal system. Thirdly, Combination Weighting Method is used to guarantee the minimization of the overall deviation.