Since 2014
The Study of Asset Liquidity Under Financial Distress
Journal of Financial Studies
View Archive Info| Field | Value | |
| Title |
The Study of Asset Liquidity Under Financial Distress
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| Creator |
Ming-Chieh Hsu
Yehning Chen Hsien-Chan Ho |
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| Description |
This paper investigates the relationship between asset liquidity and investment efficiency of financially distressed firms. In the literature, there have been lots of discussions on behavior of financially distressed firms when contracts restructuring and financial restructuring are available. This paper contributes to the literature by taking into account the possibility that distressed firms may sell their assets to solve financial problems. Several interesting results are found. First, the owner-manager of a distressed firm will endure investment inefficiency if the firmfs assets are highly illiquid. Second, the owner-manager may allow bankruptcy to happen even if he has the money to avoid it. Third, overinvestment occurs if the owner-manager cannot negotiate with debtholders. Finally, the overinvestment problem is mitigated when the owner-manager can negotiate with debtholders. Key words: Financial distress, Assets liquidity |
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| Publisher |
Journal of Financial Studies
財務金èžå¸åˆŠ |
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| Date |
2011-09-12
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| Type |
—
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| Format |
application/pdf
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| Identifier |
http://www.jfs.org.tw/index.php/jfs/article/view/2011276
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| Source |
Journal of Financial Studies; Vol 5, No 4 (1998); 21
財務金èžå¸åˆŠ; Vol 5, No 4 (1998); 21 |
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| Language |
—
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