This article is about ethics, or more correctly questionable ethics. It is also about greed. When a commercial party’s consideration for its stakeholders is distorted by an opportunity for short-term gain, it creates a self-centric view of the world. This myopia creates a blurred vision of...

For the most part, research purporting to address the issue of financial distress has actually studied samples of bankrupt companies. Financial distress and bankruptcy are different. In contrast, this paper starts with a sample of companies that are financially distressed but not yet bankrupt....

By analyzing actual cash flows in comparison with enterprise values (market capitalization plus debt minus cash) we document that the market dramatically undervalues firms. The findings suggest that the equity market appears to have an extraordinarily high discount rate which negates future...

The labor studies literature has for many years accepted the labor hording theory. That theory derives from Journal of Financial Transformation seminal work by Oi (1962), Miller (1971), and Fair (1985). These studies argue that as a result of the absolute cost of hiring and training certain...

When companies fail workers lose their jobs which raises the unemployment rate and some displaced workers with less financial wealth, larger financial obligations, and who are the sole bread winners in a family become likely candidates for a personal bankruptcy filing. The central role played by...

Early warning models are among the most utilized developments in finance. A good early warning model can predict with a high degree of accuracy the likelihood that a healthy company will either go bankrupt or become financially distressed. B2B companies supply products are now global. This paper...

Globalization has precipitated movement of output and employment between regions. How similar are companies in different regions following this dramatic shift in economic activity? Corporate comparisons to test global convergence could be made along numerous dimensions. We look at firms along...

The paper examines whether it is better to separate a model/sample to account for differences between large and small firms when developing a predictive tool to identify which companies are likely to become distressed, and therefore at risk to the supply chain. Previous research has scaled data...

We investigate the ratio of terminal value (TV) to present value (PV) for a variety of enterprises. Calculations are derived at different time periods and for various size deciles and industry. We document that when there are more years of data available that the TV/PV ratio decreases. We also...