search query: @journal_id 56 / total: 1032
reference: 249 / 1032
| Author: | |
| Title: | Financial distress and corporate acquisitions : further empirical evidence |
| Journal: | Journal of Business Finance and Accounting
1996 : JUL, VOL. 23:5&6, p. 699-719 |
| Index terms: | MERGERS FINANCIAL PERFORMANCE CORPORATE FINANCE PROFITABILITY |
| Language: | eng |
| Abstract: | This paper investigates financial factors that influence the decision to acquire financially-distressed firms as well as factors that affect probability of distress. The analysis is carried out using the sequential response logit model. The results indicate that (a) The probability of distress is directly affected by financial leverage and inversely by profitability, managerial effectiveness, growth and size of the firm; (b) The probability of acquisition for a firm in distress is directly affected by such factors as the firm's sales generating ability, its managerial inefficiency, the return and proportion of its productive assets to total assets , and inversely by insider control and financial leverage. |
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