Scope, measurement, impact size and determinants of indirect cost of financial distress

Umar Farooq and Ali Qamar Jibran

Qualitative Research in Financial Markets, 2018, vol. 10, issue 1, 111-129

Abstract: Purpose - The purpose of the study is to systematically review the literature of indirect cost of financial distress to understand its scope, measurements, impact size and determinants to synthesis with future research agenda. Design/methodology/approach - Five-step process of systematic literature review (SLR) as applied byOpokuet al.(2015) is used. SLR extracted 47 studies of indirect cost after applying specified search criteria. Data regarding measurement, impact size and determinants are presented and summarised in specified tables. Findings - SLR showed that the study of indirect cost in developing countries is a literature gap. It is also found that opportunity loss, operating profit loss, market loss and risk premium are most studied indirect costs using legal definition orex anteproxy of financial distress. However, future studies are recommended to use both non-linear leverage andex anteproxy of financial distress. Future studies are also suggested to use the moderation technique while studying the determinants of indirect cost. Research limitations/implications - Literature selection is based on specific search criteria that can miss some of the other related literature. Originality/value - The indirect cost of financial distress is more costly and difficult to measure due to its complex concealed effects. A detailed literature of indirect cost is needed to understand the construct that eventually will help to define the future research agenda. To the best of the authors’ knowledge, no SLR of indirect cost is provided yet. Therefore, the outcome of this research will be valuable for both academicians and practitioners.

Keywords: Systematic review; Financial distress; Indirect cost; G32; G33 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:qrfmpp:qrfm-08-2017-0080

DOI: 10.1108/QRFM-08-2017-0080

Access Statistics for this article

Qualitative Research in Financial Markets is currently edited by Prof Bruce Burton

More articles in Qualitative Research in Financial Markets from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().