Year: 2025
Type: article
Abstract: The primary goal of this study is to gain a comprehensive understanding of Evergrande's bankruptcy, exploring the circumstances leading up to it, the ensuing impacts, a comparative analysis with other organizations, and the application of game theory to unfolding events. This investigation will particularly focus on the insights that other financial sector organizations can derive from Evergrande's experience. One major cause of Evergrande Group's financial distress is the unchecked expansion of its diversification policy, which strained its capital chain. Additionally, government regulations have tightened around the real estate sector, reducing available investment sources. Moreover, increasing market competition has gradually eroded Evergrande's market share, leading to profitability and brand reputation declines. This article underscores that Evergrande's bankruptcy offers crucial lessons for other real estate companies, providing them with valuable practical guidance. This paper contributes to the field of financial studies by highlighting the critical importance of developing a robust understanding of risk management, implementing effective risk control mechanisms, mitigating bankruptcy risk, and ensuring that hazards remain within manageable limits.
Author: Wenhui Ye
Institution: University College Dublin
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4414088193