Comparative Analysis on Evergrande and Lehman Brothers

Abstract

This paper provides a comparative analysis of Evergrande and Lehman Brothers by contrasting the general economic environment and the driving factors of the default events. In terms of the macro-economic environment, the two countries witnessed an expansion of the capital market with loose policies in the pre-crisis period. The housing market saw a boom due to the thriving market, which allowed the enterprises to expand with high debt. In the view of individual development, they do have divergent nature. However, the expanding strategy, financing mode, and their close relations with the real estate industry are similar, which are the critical drivers of crises.