Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
Series Vol. 61 , 28 December 2023
Open
Access | Article
Too Big To Fall: Bankruptcy of Lehman Brothers Holdings Inc. in 2008
* Author to whom correspondence should be addressed.
Abstract
The research background is Lehman Brothers Holdings Inc. (Lehman Bro.) sending Chapter 11 bankruptcy protection application due to extremely high leverage and liquidity lacking towards New York Court in the Subprime Lending Crisis, 2008. This research illustrates the event’s economic background, three critical factors to final bankruptcy and practical solutions from Macro and Micro perspectives. This research adopts the typical case analysis method and concludes that mismatching capital structure with high insolvency risk, not be acquired or purchased for its qualified and inferior assets by other financial institutions or provided timely adequate capital support by American Federal Reserves, agency problem as conflicts of interests between the chief executive officer and his employment's shareholders in risk preference, and finally inappropriate accounting policies without complete disclosure of misconducting Repo105 to reduce debt-equity ratio for external investors are essential reasons account for Lehman Bro. Bankruptcy in 2008 with concrete illustrations in this case analysis research papers.
Keywords
Lehman Brothers Holdings Inc., Subprime Lending Crisis, Bankruptcy, Corporate Governance, Agency Problem
References
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Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
- ISBN (Print)
- 978-1-83558-223-7
- ISBN (Online)
- 978-1-83558-224-4
- Published Date
- 28 December 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/61/20230845
- Copyright
- 28 December 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited