Determinants and consequences of financial distress: review of the empirical literature

Ahsan Habib; Mabel D' Costa; Hedy Jiaying Huang; Md. Borhan Uddin Bhuiyan; Li Sun

doi:10.1111/acfi.12400

journal article Sep 12, 2018

Determinants and consequences of financial distress: review of the empirical literature

Ahsan Habib

Mabel D' Costa Hedy Jiaying Huang Md. Borhan Uddin Bhuiyan Li Sun

Accounting & Finance Vol. 60 No. S1 pp. 1023-1075 · Wiley

View at Publisher Save 10.1111/acfi.12400

Abstract

AbstractWe synthesise the empirical literature on the determinants and consequences of financial distress, critique the findings and offer suggestions for future research. We categorise these indicators into (i) firm‐level fundamental determinants, (ii) macroeconomic determinants and (iii) firm‐level corporate governance determinants. We categorise the consequences into (i) financial reporting and auditing consequences, (ii) firm‐level operational consequences, (iii) capital market consequences and (iv) corporate governance consequences. We suggest that future research can make a more meaningful contribution, by developing more comprehensive models of predicting financial distress which will entail a departure from the current partial analysis to a more holistic complex analysis.

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165

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References

Details

Published: Sep 12, 2018
Vol/Issue: 60(S1)
Pages: 1023-1075
License: View

Authors

A

Ahsan Habib