Corporate financial distress has changed dramatically over the past decade. From the onset of the general economic recession at the turn of the century to the present, there has been a tremendous increase in default rates and bankruptcy activity in the corporate sector throughout Europe. Firms that only a few years before had been labelled the rising stars of a new epoch and had raised massive amounts of funds on very generous terms, now suffered from inherently unprofitable business models and excessive burdens of debt. This twist of fate for the industry along with the increasing number of company scandals in recent years have raised concerns about the corporate sector’s financial stability.
KeywordsFinancial Distress Ownership Concentration Corporate Sector Announcement Return Debt Restructuring
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