TY - JOUR
T1 - Financial distress: Lifecycle and corporate restructuring
AU - Koh, S.
AU - Durand, R.B.
AU - Dai, L.
AU - Chang, Millicent
PY - 2015
Y1 - 2015
N2 - © 2015 Elsevier B.V. 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.
AB - © 2015 Elsevier B.V. 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.
U2 - 10.1016/j.jcorpfin.2015.04.004
DO - 10.1016/j.jcorpfin.2015.04.004
M3 - Article
SN - 0929-1199
VL - 33
SP - 19
EP - 33
JO - Journal of Corporate Finance
JF - Journal of Corporate Finance
ER -