During economic downturns, firms file for bankruptcy in an effort to attempt a "turnaround". The objective of this study is to assess the effectiveness of retrenchment strategies in the context of bankruptcy, as the most severe form of crisis. We conducted a longitudinal analysis of a sample of...

In this paper, we examine firms with established profitability that suddenly experience financial distress and subsequently return to a profitable position. Our interest lies in the speed with which a firm reverses from a loss position to a position of income and we focus on the duration of time...

The determinants of transitions between different states of financial distress are analyzed using two versions of Markov chain models: a multinomial logit model without random effects and a multinomial logit model capturing such unobservable factors. The empirical analysis is based on a panel...

This paper examines how consumers react to the financial distress of durable goods manufacturers by looking at the Swedish new car market. We employ a difference-in-differences matching methodology whereby we compare sales of carmaker Saab with those of a carefully constructed control group of...