This case describes the largest bankruptcy in corporate China. The China Evergrande Group (Evergrande), founded in 1996, became a major player in the real estate industry through aggressive, high-leverage strategies. However, it faced a severe financial crisis due to overexpansion, financial fraud, and regulatory tightening implemented by the government. In December 2024, a senior financial analyst at one of Evergrande’s major creditors, was assessing the financial implications in this evolving situation. She scrambled to find a way it could recoup its investments in Evergrande.
恒大集团：中国企业史上最大破产案 (Evergrande Group: The Largest Bankruptcy in Corporate China - Simplified Chinese version)
Yaqi Shi, Renhui Fu
Product #:W47519
Supplier:Ivey
Discipline:Accounting, Finance
Setting:China, 2023
Subjects:
Industries:
Your Price:$10.54
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Learning Objectives
完成案例分析与作业问题后，学生应能够：
- 识别房地产公司破产的决定性因素。
- 理解财务欺诈的成因与后果。
- 实施财务报表分析。
- 评估高杠杆策略在以下方面的利弊：把握投资机会；提升息税折旧摊销前利润（EBITDA）；创造回报；以及企业在经营困难时引发流动性危机。
- 分析不同公司治理模式的优劣。
This case is suitable for graduate and undergraduate students as part of a corporate finance or financial statement analysis course. This case assumes a prior understanding of financial accounting and should not be used as an introduction to a financial accounting course.
After working through the case and assignment questions, students will be able to do the following:
- Identify the determinants of bankruptcy for a real estate company
- Understand causes and consequences of financial fraud
- Perform financial statement analyses
- Evaluate the advantages and disadvantages that high leverage provides in capturing investment opportunities; growing earnings before interest, taxes, depreciation, and amortization; generating returns; and causing a liquidity crisis when firms face difficulty in operation
- Evaluate the pros and cons of different types of corporate governance