Financial Distress, Firm Life Cycle, and Corporate Restructuring Decisions: Evidence from Pakistan's Economy

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62690094%3A18450%2F22%3A50019466" target="_blank" >RIV/62690094:18450/22:50019466 - isvavai.cz</a>

Result on the web

<a href="https://www.mdpi.com/2227-7099/10/7/175" target="_blank" >https://www.mdpi.com/2227-7099/10/7/175</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.3390/economies10070175" target="_blank" >10.3390/economies10070175</a>

Result language

angličtina

Original language name

Financial Distress, Firm Life Cycle, and Corporate Restructuring Decisions: Evidence from Pakistan's Economy

Original language description

This study examines the influence of financial distress on corporate restructuring decisions and whether this restructuring varies across the Firm Life Cycle (FLC) stages of Pakistani non-financial listed firms for the 12 years from 2005 to 2016 inclusive. FLC stages and financial distress are measured using the Dickinson model and Altman Z-score, respectively. Corporate restructuring is segregated into equity and debt restructuring. The data are analyzed using a panel logistic regression model. The results reveal that financial distress is negatively associated with corporate debt restructuring decisions and positively associated with corporate equity restructuring decisions. Further analysis shows that new, growing and mature firms have positive associations with equity restructuring decisions and negative associations with debt restructuring decisions, while declining firms prefer debt restructuring. This study has important implications for corporate managers and policy makers.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50206 - Finance

Project

—

Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2022

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Economies

ISSN

2227-7099

e-ISSN

2227-7099

Volume of the periodical

10

Issue of the periodical within the volume

7

Country of publishing house

CH - SWITZERLAND

Number of pages

12

Pages from-to

"Article Number: 175"

UT code for WoS article

000833738600001

EID of the result in the Scopus database

2-s2.0-85135473644