Abstract:Purpose
The purpose of this paper is to examine the effects of corporate governance failure, excess remuneration and entrenchment of managers, company variables and corporate governance variables on the company’s financial distress risk (DETR) in the French context.
Design/methodology/approach
Using the regression analysis, this paper is based on 201 observations about 67 companies of SBF 120 from 2015 to 2017. Data are collected on the Thomson Reuters database and in the referenced documents, which are publ… Show more
“…Because of these major changes, firms face financial distress (Elloumi and Gueyié, 2001; Muranda, 2006; Yousaf et al , 2021). Financial distress is expected to cause many business concerns such as dividend reduction, loss of sale, reduced profits and higher costs (Hazami-Ammar and Gafsi, 2021). Corporate governance has gained immense global importance from regulators, investors and creditors (Li et al , 2008; Younas et al , 2021; Zaman et al , 2018).…”
Section: Literature Review and Hypotheses Formulationmentioning
Purpose
This study aims to explore the relative efficiency of the working capital management (WCM) for Emirati firms before and during the coronavirus crisis. Next, this study explores the potential impact of WCM on the likelihood of financial distress.
Design/methodology/approach
A data envelopment analysis (DEA) was applied to assess the relative efficiency of the WCM. This study uses the emerging market Z-score model to predict the likelihood of financial distress. The logistic regression was applied to investigate the impact of the efficiency of WCM on firms’ financial distress.
Findings
The results of this study model showed a negative and significant influence of the efficiency of WCM on firms’ financial distress likelihood.
Practical implications
The findings have important implications for many stakeholders, including decision makers, WC managers, financiers, investors, financial consultants, researchers and others, in increasing their awareness of firms’ WCM performance before and during the crisis. Further, the results could have implications for trading strategies as investors seek attractive economic gains from their investment in firms that care about WCM.
Social implications
The implications of WCM performance on social interests would cause firms’ decision makers to operate efficiently and achieve the best practices to minimise the probability of firms' financial distress.
Originality/value
This study advances a novel contribution to the literature by introducing a novel model to assess WCM based on DEA technology.
“…Because of these major changes, firms face financial distress (Elloumi and Gueyié, 2001; Muranda, 2006; Yousaf et al , 2021). Financial distress is expected to cause many business concerns such as dividend reduction, loss of sale, reduced profits and higher costs (Hazami-Ammar and Gafsi, 2021). Corporate governance has gained immense global importance from regulators, investors and creditors (Li et al , 2008; Younas et al , 2021; Zaman et al , 2018).…”
Section: Literature Review and Hypotheses Formulationmentioning
Purpose
This study aims to explore the relative efficiency of the working capital management (WCM) for Emirati firms before and during the coronavirus crisis. Next, this study explores the potential impact of WCM on the likelihood of financial distress.
Design/methodology/approach
A data envelopment analysis (DEA) was applied to assess the relative efficiency of the WCM. This study uses the emerging market Z-score model to predict the likelihood of financial distress. The logistic regression was applied to investigate the impact of the efficiency of WCM on firms’ financial distress.
Findings
The results of this study model showed a negative and significant influence of the efficiency of WCM on firms’ financial distress likelihood.
Practical implications
The findings have important implications for many stakeholders, including decision makers, WC managers, financiers, investors, financial consultants, researchers and others, in increasing their awareness of firms’ WCM performance before and during the crisis. Further, the results could have implications for trading strategies as investors seek attractive economic gains from their investment in firms that care about WCM.
Social implications
The implications of WCM performance on social interests would cause firms’ decision makers to operate efficiently and achieve the best practices to minimise the probability of firms' financial distress.
Originality/value
This study advances a novel contribution to the literature by introducing a novel model to assess WCM based on DEA technology.
“…Most companies fail for various reasons, but management mismatches are usually at the heart of the problem [1]. Management competency is following the conclusions in many studies highlighting the impact of corporate governance on corporate distress, which shows that there is a significant association between corporate governance and financial distress [7] [8] Formal aggregate studies dealing with omens of business failure began to emerge in the 1930s [5]. Anjum [3] shows a list of several researchers who have contributed to developing models for predicting bankruptcy or business failure.…”
This research aims to evaluate the development of public companies in the property and real estate sector from 2017 to 2020. The method used to assess such development is the Z-score model. The Z-score model classifies the company into three conditions: safe, gray, and distress. The study showed that of the 40 companies studied, most companies, above 72.5%, fall into the safe category. Companies that fall into the gray area category are second, and companies in the distress category are third. From 2017 to 2020, companies that fall into the safe category tend to decline. On the other hand, companies that fall into distress tend to increase.
“…Svo eru viðskiptakostnaðar kenningar (e. transaction cost economics) sem benda á hvenaer og við hvaða skilyrði megi leysa umboðsvandamál með breytingu á skipulagi. Viðbrögð til að draga úr umboðsvanda og haettu á siðbresti í viðskiptum á markaði geta aukið viðskiptakostnað sem mögulegt er að laekka með því að faera starfsemina inn í fyrirtaeki og undir vald stjórnenda (Hazami-Ammar og Gafsi, 2021;Williamson, 1975Williamson, , 1984.…”
Section: Stjórnarhaettir í Ljósi Umboðskenningaunclassified
Stjórnarhættir fyrirtækja hafa fest sig í sessi sem sjálfstætt fag á síðustu áratugum. Fyrst í stað voru rannsóknir á stjórnarháttum afmarkaðar við þróun kenninga á þeim umboðs- og eftirlitsvanda sem varð til þegar eigendur fyrirtækja fóru að fá til sín atvinnustjórnendur til að veita fyrirtækjum forystu. Síðar fóru kenningar um stjórnarhætti að rýna í samskipti við fleiri hagsmunaaðila. Samhliða þróast lagaleg umgjörð stjórnarhátta og leiðbeiningar um stjórnarhætti ekki síst vegna þess að þau vandamál og sú áhætta sem er viðfangsefni stjórnarhátta birtist í raun og veru gegnum stórfelld tjón þegar fyrirtæki fóru að falla vegna misbrests í stjórnarháttum og umboðssvika. Þessi grein miðar að því gefa innsýn í fræðasviðið og þróun leiðbeininga um stjórnarhætti. Annars vegar er áherslan á fræðilegt yfirlit yfir rannsóknir á stjórnarháttum þar sem fjallað er um stjórnarhætti fyrirtækja út frá hluthöfum, hagsmunaaðilum, lagalegri hlið og út frá leiðbeiningum. Hins vegar er athyglinni beint að hinum hagnýta þætti stjórnarhátta þar sem gerð er könnunar rannsókn á þróun leiðbeininga um stjórnarhætti fyrirtækja á Íslandi. Skoðað er hvað það er sem leiðbeiningar um stjórnarhætti fyrirtækja fjalla almennt um og síðan er rýnt í allar útgáfur af íslensku leiðbeiningum sem birtar hafa verið á síðustu 17 árum, en þær eru sex talsins. Fyrst í stað, frá 2004, var áherslan mest á leiðbeiningar varðandi hluthafa, stjórn og stjórnarmenn. Eftir hrun 2008 var lögð meiri áhersla á leiðbeiningar varðandi stjórnarmenn og upplýsingagjöf til samfélagsins samhliða því sem kveðið er nánar á um hlutverk stjórnar. Á síðustu árum hefur athyglin verið mest á þróun leiðbeininga varðandi starf undirnefnda stjórnar og stöðu þeirra nefnda gagnvart hluthöfum, stjórn og framkvæmdastjórn.
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