Financial distress
View article
The financial burden and distress of patients with cancer: Understanding and stepping‐up action on the financial toxicity of cancer treatment Open
“Financial toxicity” has now become a familiar term used in the discussion of cancer drugs, and it is gaining traction in the literature given the high price of newer classes of therapies. However, as a phenomenon in the contemporary treat…
View article
Financial Toxicity of Cancer Care: It’s Time to Intervene Open
Evidence suggests that a considerably large proportion of cancer patients are affected by treatment-related financial harm. As medical debt grows for some with cancer, the downstream effects can be catastrophic, with a recent study suggest…
View article
Deposit Competition and Financial Fragility: Evidence from the US Banking Sector Open
We develop a structural empirical model of the US banking sector. Insured depositors and run-prone uninsured depositors choose between differentiated banks. Banks compete for deposits and endogenously default. The estimated demand for unin…
View article
Do ESG strategies enhance bank stability during financial turmoil? Evidence from Europe Open
This paper investigates the joint and separate effects of Environmental (E), Social (S), and Governance (G) scores on bank stability. Using a sample of European banks operating in 21 countries over 2005-2017, we find that the total ESG sco…
View article
New Evidence on the Aftermath of Financial Crises in Advanced Countries Open
This paper examines the aftermath of postwar financial crises in advanced countries. We construct a new semiannual series on financial distress in 24 OECD countries for the period 1967–2012. The series is based on assessments of the health…
View article
Earnings Management: An Analysis of Opportunistic Behaviour, Monitoring Mechanism and Financial Distress Open
The aim of this study is to analyze the relationship between opportunistic behaviors (free cash flow and profitability), monitoring mechanism (leverage) and pressure behaviors (financial distress) toward earnings management. There are inde…
View article
Corporate governance effect on financial distress likelihood: Evidence from Spain Open
The paper explores some mechanisms of corporate governance (ownership and board characteristics)\nin Spanish listed companies and their impact on the likelihood of financial distress. An empirical study\nwas conducted between 2007 and 2012…
View article
Determinants and consequences of financial distress: review of the empirical literature Open
We 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…
View article
What Happened: Financial Factors in the Great Recession Open
At the onset of the recent global financial crisis, the workhorse macroeconomic models assumed frictionless financial markets. These frameworks were thus not able to anticipate the crisis, nor to analyze how the disruption of credit market…
View article
Financial toxicity in cancer care: origins, impact, and solutions Open
Financial toxicity describes the financial burden and distress that can arise for patients, and their family members, as a result of cancer treatment. It includes direct out-of-pocket costs for treatment and indirect costs such as travel, …
View article
To Merge, Sell, or Liquidate? Socioemotional Wealth, Family Control, and the Choice of Business Exit Open
We take the perspective that considering the affective motives of dominant owners is essential to understanding business exit. Drawing on a refinement of behavioral agency theory, we argue that family-controlled firms are less likely than …
View article
THE DETERMINANTS OF CORPORATE HEDGING Open
This study examined the determinants of corporate hedging based on samples taken from non-financial firms on the United Kingdom’s Financial Times Stock Exchange FTSE 250. In this study, derivative usage is used as the proxy for risk mana…
View article
Do business strategies and environmental, social, and governance (ESG) performance mitigate the likelihood of financial distress? A multiple mediation model Open
This study explores the connection between business strategies, ESG performance, and the probability of bankruptcy. Using a sample comprising 1970 U.S. firm-year observations from 2016 to 2020, this study adopts several techniques to achie…
View article
Shock Propagation and Banking Structure Open
We explore whether lenders’ decisions to provide liquidity in periods of distress are affected by the extent to which they internalize the negative spillovers of industry downturns. We conjecture that high-market-share lenders are more lik…
View article
Do Traditional Financial Distress Prediction Models Predict the Early Warning Signs of Financial Distress? Open
Purpose: This study aims to compare the prediction accuracy of traditional distress prediction models for the firms which are at an early and advanced stage of distress in an emerging market, Pakistan, during 2001–2015. Design/methodology/…
View article
PENGARUH RASIO LIKUIDITAS, LEVERAGE, OPERATING CAPACITY, DAN SALES GROWTH TERHADAP FINANCIAL DISTRESS Open
Financial distress is a phase of decline in financial condition that occurred before the onset of bankruptcy. This study aims to examine the effect of liquidity, leverage, operating capacity, and sales growth of financial distress. This re…
View article
The Effects of the Massachusetts Health Reform on Household Financial Distress Open
In this paper, we examine the effect of a major health care reform in Massachusetts on a broad set of financial outcomes using credit report data. We exploit variation in the impact of the reform across counties and age groups using pre-re…
View article
Talent in distressed firms Open
Funding Information: Ramin P. Baghai is with the Stockholm School of Economics. Rui C. Silva is with the Nova School of Business and Economics. Viktor Thell is with Finansinspektionen (Sweden's financial supervisory authority). Vikrant Vig…
View article
Predicting Financial Distress: A Comparison of Survival Analysis and Decision Tree Techniques Open
Financial distress and then the consequent failure of a business is usually an extremely costly and disruptive event. Statistical financial distress prediction models attempt to predict whether a business will experience financial distress…
View article
Does Hedging Affect Firm Value? Evidence from a Natural Experiment Open
We exploit an exogenous change in basis risk in the oil and gas industry to analyze the channels through which hedging affects firm value. Using a difference-in-differences framework, we find that firms affected by a basis risk shock reduc…
View article
The Impact of CSR and Financial Distress on Financial Performance—Evidence from Chinese Listed Companies of the Manufacturing Industry Open
This paper explores the impact of corporate social responsibility (CSR) and financial distress on corporate financial performance (CFP) in Chinese listed companies of the manufacturing industry. Covering a total of 1445 manufacturing obser…
View article
News and narratives in financial systems: Exploiting big data for systemic risk assessment Open
This paper applies algorithmic analysis to financial market text-based data to assess how narratives and sentiment might drive financial system developments. We find changes in emotional content in narratives are highly correlated across d…
View article
Destructive Creation at Work: How Financial Distress Spurs Entrepreneurship Open
Using U.S. Census firm-worker data, I document that firms’ financial distress has an economically important effect on employee departures to entrepreneurship. The impact is amplified in the high-tech and service sectors, where employees ar…
View article
The Determinant of Financial Distress on Indonesian Family Firm Open
This paper aims to find the influence of the corporate governance and financial ratios on the probability of financially distressed family firms in Indonesia that are listed in Indonesia Stock Exchange in the period of 2008 – 2013. There i…
View article
Noncognitive Abilities and Financial Distress: Evidence from a Representative Household Panel Open
This paper provides evidence of how noncognitive abilities affect financial distress. In a representative panel of households, we find that people in the bottom quintile of noncognitive abilities are 10 times more likely to experience fina…
View article
The Perfect Storm: Collision of the Business of Mental Health and the Implementation of Evidence-Based Practices Open
Financing has been hypothesized to be an important driver of the implementation of evidence-based practices (EBPs), yet there has been little systematic investigation of financing as a factor in EBP implementation. This column presents fin…
View article
Global Relation between Financial Distress and Equity Returns Open
This study explores the distress risk anomaly — the tendency for stocks with high credit risk to perform poorly — among 38 countries over two decades. We find a strong, negative link between default probabilities and equity returns, concen…
View article
Distress Propagation in Complex Networks: The Case of Non-Linear DebtRank Open
We consider a dynamical model of distress propagation on complex networks, which we apply to the study of financial contagion in networks of banks connected to each other by direct exposures. The model that we consider is an extension of t…
View article
Financial distress and its determinants: Evidence from insurance companies in Ethiopia Open
This research is aimed to investigate the determinants of financial distress of insurance companies in Ethiopia using balanced panel data from eleven insurance companies for the period covering from 2008 to 2019. A quantitative approach an…
View article
Precision of the models of Altman, Springate, Zmijewski, and Grover for predicting the financial distress Open
Financial distress models need to be developed as a model of an early warning system. Such an effort is intended to anticipate the conditions that can lead to the bankruptcy of the company. This study aims to analyze the accuracy of the mo…