Financial Distress: Lifecycle and Corporate Restructuring
MetadataShow full item record
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.
Showing items related by title, author, creator and subject.
The Impact of Financial Distress on Corporate Tax Avoidance Spanning the Global Financial Crisis: Evidence from AustraliaRichardson, G.; Taylor, Grantley; Lanis, R. (2015)Firms have the incentive to engage in corporate tax avoidance when the marginal benefits exceed the marginal costs. In fact, when firms are under financial distress, the benefits of tax avoidance outweigh the costs, ...
Financial distress, outside directors and corporate tax aggressiveness spanning the global financial crisis: An empirical analysisRichardson, G.; Lanis, R.; Taylor, Grantley (2015)We examine financial distress and tax aggressiveness spanning the global financial crisis (GFC) of 2008 and the impact of the interaction between board independence and firm-specific financial distress on tax aggressiveness. ...
Guo, Fei (2008)Concentrated corporate ownership prevails in most countries, so the relationship between controlling shareholders and minority shareholders is an important principle-agent problem. Tunnelling, the transfer of assets and ...