The cost and timing of financial distress

被引：41

作者：

Elkamhi, Redouane ^{[2
]}

Ericsson, Jan ^{[3
]}

Parsons, Christopher A. ^{[1
]}

机构：

[1] Univ Calif San Diego, Rady Sch Management, La Jolla, CA 92093 USA

[2] Univ Toronto, Rotman Sch Management, Toronto, ON M5S 1A1, Canada

[3] McGill Univ, Desautels Fac Management, Montreal, PQ H3A 2T5, Canada

来源：

JOURNAL OF FINANCIAL ECONOMICS | 2012年 / 105卷 / 01期

关键词：

Trade off theory; Financial distress; Debt-equity holder conflicts; Tax benefits; Financial leverage; OPTIMAL CAPITAL STRUCTURE; STRUCTURAL MODELS; CORPORATE-DEBT; BANKRUPTCY; RISK; FIRM; TRANSACTIONS; DETERMINANTS; LIQUIDATION; VALUATION;

D O I：

10.1016/j.jfineco.2012.02.005

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

Assessments of the trade-off theory have typically compared the present value of tax benefits to the present value of bankruptcy costs. We verify that this comparison overwhelmingly favors tax benefits, suggesting that firms are under-leveraged. However, when we allow firms to experience even modest (e.g., 1-2% annualized) financial distress costs prior to bankruptcy, the cumulative present value of such costs can easily offset the tax benefits. (C) 2012 Elsevier B.V. All rights reserved.

引用

页码：62 / 81

页数：20

共 50 条

[31] Leveraged buyouts and financial distress
Ayash, Brian
Rastad, Mahdi
FINANCE RESEARCH LETTERS, 2021, 38
[32] Financial distress and competitors' investment
Garcia-Appendini, Emilia
JOURNAL OF CORPORATE FINANCE, 2018, 51 : 182 - 209
[33] VALUATION OF THE COMPANY IN FINANCIAL DISTRESS
Hrdy, Milan
Simek, Bohuslav
E & M EKONOMIE A MANAGEMENT, 2012, 15 (04): : 121 - 133
[34] Religiosity and financial distress inUSfirms
Gharbi, Ines
Hamed-Sidhom, Mounira
Hussainey, Khaled
Ganouati, Janet
INTERNATIONAL JOURNAL OF FINANCE & ECONOMICS, 2021, 26 (03) : 3902 - 3915
[35] Indirect Costs of Financial Distress*
Custodio, Claudia
Ferreira, Miguel A.
Garcia-Appendini, Emilia
REVIEW OF FINANCE, 2023, 27 (06) : 2233 - 2270
[36] Impact of financial constraints and financial distress on cash holdings
Bukalska, Elzbieta
Maziarczyk, Anna
INTERNATIONAL JOURNAL OF MANAGEMENT AND ECONOMICS, 2023, 59 (01) : 13 - 31
[37] The Detection and Dynamics of Financial Distress
Fitzpatrick, Julie
Ogden, Joseph P.
INTERNATIONAL REVIEW OF FINANCE, 2011, 11 (01) : 87 - 121
[38] Do Traditional Financial Distress Prediction Models Predict the Early Warning Signs of Financial Distress?
Ashraf, Sumaira
Felix, Elisabete G. S.
Serrasqueiro, Zelia
JOURNAL OF RISK AND FINANCIAL MANAGEMENT, 2019, 12 (02)
[39] Financial Distress, the Severity of Financial Distress and Direction of Earnings Management: Evidences from Indian Economy
Rakshit, Debdas
Chatterjee, Chanchal
Paul, Ananya
FIIB BUSINESS REVIEW, 2024, 13 (02) : 192 - 207
[40] Corporate governance and financial distress: Asian emerging market perspective
Younas, Noman
UdDin, Shahab
Awan, Tahira
Khan, Muhammad Yar
CORPORATE GOVERNANCE-THE INTERNATIONAL JOURNAL OF BUSINESS IN SOCIETY, 2021, 21 (04): : 702 - 715

← 1 2 3 4 5 →