The early stages of financial distress

被引：45
|
作者：
Richard B. Whitaker
机构：
[1] Eastern Illinois University,Department of Finance, Lumpkin College of Business
来源：
Journal of Economics and Finance | 1999年 / 23卷 / 2期
关键词：
Cash Flow; Firm Performance; Financial Distress; Poor Management; Logit Regression;
D O I：
10.1007/BF02745946
中图分类号：
学科分类号：
摘要：
More firms enter financial distress as a result of poor management than as a result of economic distress. Management actions are a significant determinant of recovery and improvement in the industry-adjusted market value for firms entering financial distress as a result of poor management, but not for firms entering as a result of economic distress. In the early stages of financial distress, median firm operating income measured on an unadjusted basis and after controlling for other factors which alter firm performance increases significantly. The results support Jensen’s hypothesis that financial distress triggers corrective action which improves firm performance. (JEL G300)
引用
收藏
页码：123 / 132
页数：9
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