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This document summarizes a journal article that examines the early stages of financial distress. It finds that more firms enter financial distress due to poor management rather than economic factors. Management actions are a significant determinant of recovery for firms entering distress due to poor management, but not for firms entering due to economic distress. The article also finds that in the early stages of financial distress, median firm operating income increases significantly after controlling for

Author

Putri Mutira

Language

EN