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Survival of reorganized firms in France

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  • Ayadi, Rim
  • Abid, Ilyes
  • Guesmi, Khaled

Abstract

This paper investigates the survival prospects of reorganized companies in France. It seeks to identify the determinants that accelerate or reduce the time to failure of reorganized firms in the French context. Our findings reveal that the company's size, profitability, liquidity, the industry profitability, and inflation rate have a positive effect while the leverage and the variation of short-term interest rate have a negative effect on the survival of reorganized firms in France. The study also shows that the failure process of a reorganized firm is similar to that of a new firm.

Suggested Citation

  • Ayadi, Rim & Abid, Ilyes & Guesmi, Khaled, 2021. "Survival of reorganized firms in France," Finance Research Letters, Elsevier, vol. 38(C).
    • Handle: RePEc:eee:finlet:v:38:y:2021:i:c:s1544612319306749
    DOI: 10.1016/j.frl.2020.101434
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    2. Verreydt, Mathias & Dewaelheyns, Nico & Van Hulle, Cynthia, 2022. "Time is money: An analysis of the time-to-failure in a flexible reorganization system," Finance Research Letters, Elsevier, vol. 46(PA).

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