Proceedings of the 2023 2nd International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2023)

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Impact of Different Leverage Ratios on the Development Status of the Company

Authors
Naitian Fan1, Jiayi Wang2, Yan Wang3, *
1Xianda College of Economics and Humanities, Shanghai, 250014, China
2Shandong University of Finance and Economics, Jinan, 100083, China
3China Agricultural University, Beijing, 202150, China
*Corresponding author. Email: yan.wang@ucdenver.edu
Corresponding Author
Yan Wang
Available Online 10 October 2023.
DOI
10.2991/978-94-6463-268-2_7How to use a DOI?
Keywords
Real estate companies; high leverage; low leverage; Evergrande Group; China Resources Land
Abstract

Nowadays, real estate is an integral part of the national economy and plays an important role in various aspects. Contemporarily, with fast growing economy, real estate companies often lead to high leverage and high debt due to the size of their capital and operational risks. However, with the adjustment of national policies, the development of low leverage and deleveraging is encouraged. In this study, we will take Evergrande Group and Huarun as examples to explore the differences in the development paths as well as routine of companies under different leverage models and the reasons that lead to the different development outcomes. Overall, these results explore the different impacts of different leverage models on the companies and further explore measures related to the healthy operation of the companies, which can play a positive role in the healthy development of the real estate industry as well as shed light on guiding further exploration of real estate industry.

Copyright
© 2024 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 2023 2nd International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2023)
Series
Advances in Economics, Business and Management Research
Publication Date
10 October 2023
ISBN
10.2991/978-94-6463-268-2_7
ISSN
2352-5428
DOI
10.2991/978-94-6463-268-2_7How to use a DOI?
Copyright
© 2024 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  - Naitian Fan
AU  - Jiayi Wang
AU  - Yan Wang
PY  - 2023
DA  - 2023/10/10
TI  - Impact of Different Leverage Ratios on the Development Status of the Company
BT  - Proceedings of the 2023 2nd International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2023)
PB  - Atlantis Press
SP  - 47
EP  - 54
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-268-2_7
DO  - 10.2991/978-94-6463-268-2_7
ID  - Fan2023
ER  -