Financial distress: Lifecycle and corporate restructuring
By SzeKee Koh, Robert B. Durand, Lele Dai, Millicent Chang. 2015
170 citations recorded by the source corpus.
A firm's lifecycle consists of birth, growth, maturity and decline. We examine the strategies that firms choose when facing financial distress and present evidence that these choices are influenced by the corporate lifecycle. This influence is most pronounced in the choice of financial restructuring strategies such as reducing dividends or changing capital structure. We also examine if the way firms face financial distress affects the likelihood of recovery. We find that reducing investment and dividends are associated with recovery for all firms, but there is little influence of lifecycle.
Subfields: Accounting
View Paper: https://www.semanticscholar.org/paper/330dd3687eca2752aa5cbb430b8131709afe1a97
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Citations in the corpus
- Organization capital and firm life cycle (2018, background): “…equity offerings (DeAngelo et al. 2010), cash holdings (Faff et al. 2016), acquisition rate and corresponding benefits (Arikan and Stulz 2016), firm risk taking (Habib and Hasan 2017), the cost of capital (Hasan et al. 2015), and restructuring strategies during financial distress (Koh et al. 2015).”