Financial Distress: Lifecycle and Corporate Restructuring
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 restruct...
| Main Authors: | , , , |
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| Format: | Journal Article |
| Published: |
Elsevier BV * North-Holland
2015
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| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.11937/32734 |
| _version_ | 1848753745897193472 |
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| author | Koh, S. Durand, Robert Dai, L. Chang, M. |
| author_facet | Koh, S. Durand, Robert Dai, L. Chang, M. |
| author_sort | Koh, S. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | 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. |
| first_indexed | 2025-11-14T08:29:24Z |
| format | Journal Article |
| id | curtin-20.500.11937-32734 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T08:29:24Z |
| publishDate | 2015 |
| publisher | Elsevier BV * North-Holland |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-327342018-03-29T09:08:25Z Financial Distress: Lifecycle and Corporate Restructuring Koh, S. Durand, Robert Dai, L. Chang, M. Lifecycle theory Distance to default Financial distress Restructuring 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. 2015 Journal Article http://hdl.handle.net/20.500.11937/32734 10.1016/j.jcorpfin.2015.04.004 Elsevier BV * North-Holland restricted |
| spellingShingle | Lifecycle theory Distance to default Financial distress Restructuring Koh, S. Durand, Robert Dai, L. Chang, M. Financial Distress: Lifecycle and Corporate Restructuring |
| title | Financial Distress: Lifecycle and Corporate Restructuring |
| title_full | Financial Distress: Lifecycle and Corporate Restructuring |
| title_fullStr | Financial Distress: Lifecycle and Corporate Restructuring |
| title_full_unstemmed | Financial Distress: Lifecycle and Corporate Restructuring |
| title_short | Financial Distress: Lifecycle and Corporate Restructuring |
| title_sort | financial distress: lifecycle and corporate restructuring |
| topic | Lifecycle theory Distance to default Financial distress Restructuring |
| url | http://hdl.handle.net/20.500.11937/32734 |