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What factors discriminate reorganized and delisted distressed firms: Evidence from Malaysia

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  • Ahmad, Abd Halim

Abstract

This paper examines the factors that differentiate reorganized and delisted financially distressed firms in Malaysia. The results show that earnings before interest and tax to interest expense, cumulative average abnormal returns and the role the top 10 largest shareholders play are significant. The inclusion of firm-specific financial, market and institutional variables improve the estimation. The findings of this study suggest models incorporating these features can be used by creditors, regulators and investors to manage credit and financial market risk.

Suggested Citation

  • Ahmad, Abd Halim, 2019. "What factors discriminate reorganized and delisted distressed firms: Evidence from Malaysia," Finance Research Letters, Elsevier, vol. 29(C), pages 50-56.
    • Handle: RePEc:eee:finlet:v:29:y:2019:i:c:p:50-56
    DOI: 10.1016/j.frl.2019.03.010
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    More about this item

    Keywords

    Financial distress; Reorganize; Delisted; Malaysia;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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