Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)

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Why Did Evergrand Go Bankrupt: Financial Statement Analysis

Authors
Yanyi Liu1, *
1Bachuan International Education, No. 56 Tianlan Avenue, Jiangbei District, Chongqing, China
*Corresponding author. Email: 202008071@itc.ac.kr
Corresponding Author
Yanyi Liu
Available Online 24 February 2025.
DOI
10.2991/978-94-6463-652-9_44How to use a DOI?
Keywords
Evergrand; PwC; financial statement; liquidity issue
Abstract

On January 29, 2024, Evergrande, a former Chinese real estate giant, officially declared bankruptcy. People unfamiliar with the complete story may have doubts about it and want to know the reasons behind it, so the research will be on why Evergrand will go bankrupt. This research will try to explore the answer to this question by analyzing the internal behaviour of the company and comparing data, including profitability, solvency and liquidity, efficiency and investment ratios. The conclusion is that Evergrande’s governance and PwC’s negligence led to Evergrand’s ultimate bankruptcy. The significance and importance of this research are to warn other real estate companies and even all companies in the market that good management must be carried out, internal control mechanisms must be strengthened, and financial cheating must be prevented by auditing institutions; regulatory authorities strengthen their scrutiny; enhance corporate social responsibility and keep consumers and investors’ rights and interests to improve the sustainable developments of the whole society.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
24 February 2025
ISBN
978-94-6463-652-9
ISSN
2352-5428
DOI
10.2991/978-94-6463-652-9_44How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Yanyi Liu
PY  - 2025
DA  - 2025/02/24
TI  - Why Did Evergrand Go Bankrupt: Financial Statement Analysis
BT  - Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)
PB  - Atlantis Press
SP  - 418
EP  - 425
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-652-9_44
DO  - 10.2991/978-94-6463-652-9_44
ID  - Liu2025
ER  -