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By Martin Schmuck

​The paintings of Martin Schmuck empirically investigates the phenomenon of economic misery and company turnaround within the automobile provider undefined. according to a pattern of 194 publicly indexed automobile providers, the effectiveness of managerial, operational, monetary, and asset restructuring actions is analyzed in a multivariate study environment. Archetypes for profitable turnarounds are pointed out and coupled with recommendations of non-distressed businesses.

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Extra info for Financial Distress and Corporate Turnaround: An Empirical Analysis of the Automotive Supplier Industry

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Therefore, the two research streams are intertwined. Identification of corporate distress Research on the identification of corporate distress has received the broadest attention among the research fields outlined. This research stream aims to forecast corporate distress at a very early phase of the crisis progression to initiate appropriate counteractions. A range of models predict corporate distress, and they differ in respect to input factors and statistical methods. Broadly, models use one of two sets of inputs: accounting-based models use information contained in financial statements, and market-based models estimate distress 118 119 120 121 122 popular studies SCHENDEL ET AL.

2008, p. 540), SUDARSANAM/LAI (2001, pp. 184-187) and EICHNER (2008, pp. 52-53). Compare for the following YAWSON (2009, p. 222). Asset restructuring is a synonym for portfolio or strategic restructuring; see SUDARSANAM/LAI (2001, p. 186) and BOWMAN/SINGH (1993, pp. 8-10). See for the following YAWSON (2009, p. 224). See ROBBINS/PEARCE (1992). See for the following PANDIT (2000, p. 37) and PETTIGREW (1987, pp. 3-7). This framework is popular for research on corporate turnaround; compare for example SCHLEY (2010), EICHNER (2008), or BUSCHMANN 36 3.

506). See YAWSON (2009, p. 224) and SUDARSANAM/LAI (2001, p. 205). Compare for example GILSON (1989, pp. 246-247), BARKER/DUHAIME (1997, p. 33), or DENIS/KRUSE (2000, p. 411). For an overview see YAWSON (2009, p. 224). Some empirical evidence shows that the incidence of CEO turnover does not significantly differ for distressed and non-distressed firms; compare SMITH/GRAVES (2005, pp. 315-316). See SUDARSANAM/LAI (2001, p. 184). See SUDARSANAM/LAI (2001, p. 192). 249 Second, a new top management heightens the level of strategic change by instilling a sense of fresh direction throughout the firm.

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