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

Kód výsledku v 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>

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

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

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

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

Popis výsledku anglicky

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.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50206 - Finance

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2022

Kód důvěrnosti údajů

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

Název periodika

Economies

ISSN

2227-7099

e-ISSN

2227-7099

Svazek periodika

10

Číslo periodika v rámci svazku

7

Stát vydavatele periodika

CH - Švýcarská konfederace

Počet stran výsledku

12

Strana od-do

"Article Number: 175"

Kód UT WoS článku

000833738600001

EID výsledku v databázi Scopus

2-s2.0-85135473644