Financing Constraints and Firm Performance—Take Evergrande Group as an Example

Abstract

With the introduction of the “Three Red Lines” policy, real estate companies that rely on the “high leverage, high turnover” model have gradually fallen into debt crisis. Taking the Evergrande Group, which is deeply in debt crisis, as an example, this paper analyzes and studies the influencing factors of financing constraints and the relationship between financing constraints and corporate performance, and discusses the reasons why Evergrande is in debt crisis. Finally, this paper puts forward reasonable suggestions.