Financial distress

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Financial distress

Events preceding and including bankruptcy, such as violation of loan contracts.

Financial Distress

A stage before bankruptcy where a company's creditors are not being paid or are paid with significant difficulty. While a company can avoid moving from financial distress to bankruptcy, it can be very difficult. Often, financial distress can come with its own costs, such as fees paid to lawyers or the costs of extra interest for late payments. See also: Costs of financial distress.
References in periodicals archive ?
The coefficient on the dummy variable for firms in financial distress is positive and significant, implying that financially distressed firms use, on average, 5.
This research investigates the ability of cash flow composition to predict the incidence of financial distress.
Over 127,000 companies nationally experienced "significant" or "critical" financial distress in Q2 2010, and between them owed over pounds 69.
Currently, Benmelech is analyzing the relation between financial distress and labor relations, focusing in particular on "pension dumping" the process of terminating defined benefit pension plans in the face of financial distress, and on the consequences of underfunded defined-benefits pension plans for wage renegotiations.
He presents a practical text for leaders of all nonprofits, from those whose organization is fiscally strong who want to continue to strengthen it to those who are operating in the financial distress of the "Zone of Insolvency.
But brains don't necessarily protect people from financial distress.
Branch (7002) in his review article writes "Clearly we have a wide range of estimates for financial distress costs.
Researchers testing the usefulness of accounting information in predicting financial distress have used many different responses as proxies for financial distress.
Companies in financial distress that are about to go bankrupt can undergo incorporation or acquisition processes and are not classified as bankrupt.
BUSINESS leaders in the North East are calling for an end to the country's "late payment culture" after research found that the number of regional companies in financial distress has soared.
BUSINESSES across Wales saw an increase in financial distress across the majority of sectors in the first three months of 2017, according to a report from independent business recovery specialists Begbies Traynor.
Although many important contributions have been made in this area, most of the research does not include Arms in financial distress, so the financing decisions adopted by these firms are still not well known.

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