We analyse the strategies undertaken by financially-distressed companies and test the hypothesis that the probability of corporate recovery is positively related to the adoption of cash based strategies. We show that, companies that recover from financial distress are focused, diligent and adopt...

We investigate the takeover strategies of high default risk acquirers and their value impact. We find that these bidders select bigger, less profitable and unrelated targets, pursue transactions during recessions, and pay with shares by offering target shareholders high premiums. Their long-term...