Has the Global Financial Crisis increased wealth inequality?

Shchepeleva, Maria; Stolbov, Mikhail; Weill, Laurent

doi:10.1016/j.inteco.2021.12.004

Cited by 6 publications

(1 citation statement)

References 18 publications

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“…One work studied the financial crisis caused by the rapid expansion of high leverage faced by three listed companies [3]. The study found that the three companies had (1) aggressive expansion with huge financing under the premise of the high debt ratio, (2) high premium M & a spent too much on long-term equity investment, and (3) high leverage cross-border M & A.…”

Section: Literature Reviewmentioning

confidence: 99%

Financial Crisis Analysis of Evergrande Group from the Perspective of Game Theory

Wang¹,

Ye²,

Zhu³

2022

Proceedings of the 2022 2nd International Conference on Enterprise Management and Economic Development (ICEMED 2022)

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With the gradual implementation of the national deleveraging policy and changes in the internal business environment of enterprises, debt default events occur frequently, and many enterprises are facing a serious financial crisis. This paper takes Evergrande, a leading real estate enterprise, as the research object. We analyze the causes and effects of its financial crisis by studying its financial indicators and establish a game theory model to analyze the game between the government and enterprises, as well as the optimal solution for Evergrande to get out of the financial crisis. Studies show that the reasons for Evergrande's debt default are blind expansion, high leverage ratio, insufficient cash flow management, and stricter national policies. To get out of the financial dilemma, Evergrande needs to rely on its own rescue and the synergies of investors, management, and government. At the same time, in order to avoid falling into financial difficulties, other enterprises need to be cautious about diversification, rationally control leverage ratio, and balance development speed. The government should adopt the policy of seeking progress while maintaining stability, continue to promote financial reform, and reduce financing costs of enterprises.

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Section: Literature Reviewmentioning

confidence: 99%