An Empirical Study on the Relationship between Inventory Scale and Debt Risk in Real Estate Enterprises

This paper conducts an empirical study on the financial data of 66 listed real estate companies in China A-share stock market from 2010 to 2024, examining the relationship between inventory scale and debt risk. The data is sourced from the CSMAR database and analyzed in conjunction with housing price data from 70 major cities nationwide. The results show a positive correlation between real estate enterprises’ inventory scale and debt risk, indicating that larger inventory leads to higher debt risk. Additionally, cash holding level significantly mediate this relationship, suggesting that the impact of inventory scale on debt risk is transmitted through cash holding level. Market confidence positively moderates this relationship, meaning that higher market confidence amplifies the impact of inventory scale on debt risk. Based on these findings, the paper offers recommendations for various stakeholders, focusing on controlling inventory scale, maintaining healthy cash holding level, and paying attention to market confidence. The results have important practical implications for addressing debt crises and optimizing management in the current real estate market.