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Generalized Pareto Distribution fit to the risk of operating cash flow - Empirical evidence from China's listed companies of real estate

  • Jinxia Liu*
  • , Liyan Han
  • , Jing Lou
  • *Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Cash-Flow-at-Risk (CFaR) is important to the finance and investment of companies, and it is a significant factor of the corporate risk management. We use the Generalized Pareto Distribution (GPD) to model the operating Cash-Flow-at-Risk of real estate listed companies of China. The empirical results show that the GPD outperforms the Normal distribution, allowing actuaries to estimate high quantiles, and providing evaluations of the relative reliability to managers.

Original languageEnglish
Title of host publicationProceedings - International Conference on Management and Service Science, MASS 2009
DOIs
StatePublished - 2009
EventInternational Conference on Management and Service Science, MASS 2009 - Wuhan, China
Duration: 20 Sep 200922 Sep 2009

Publication series

NameProceedings - International Conference on Management and Service Science, MASS 2009

Conference

ConferenceInternational Conference on Management and Service Science, MASS 2009
Country/TerritoryChina
CityWuhan
Period20/09/0922/09/09

Keywords

  • Cash-flow-at-risk
  • China's listed companies of real estate
  • Generalized Pareto Distribution

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