ScienceDirect Publication: Finance Research Letters
Tue, 04 Feb 2020 18:01:56 GMT language
Publication date: Available online 4 February 2020
Source: Finance Research Letters
Author(s): Rim Ayadi, Ilyes Abid, Khaled Guesmi
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.