Détresse Financière et restructurations des structures de Gouvernance: Une Analyse de Survie

Bradai Houda
Additional contact information
Bradai Houda: ISG - Institut Supérieur de Gestion de Tunis [Tunis] - Université de Tunis

Post-Print from HAL

Abstract: In this study we empirically investigate the effect of financial distress on corporate governance of distressed firms. Our analysis is based on a panel of 42 American firms that suffered from repeated interest coverage shortfalls and steep earning per share declines between 1995 and 2005. We track each firm's development over the distress cycle with particular attention to corporate governance restructuring. Then, we test the role of this kind of restructuring in firm's survival using Cox regression. The results suggest differences of restructuration in different period of the distress cycle. In fact, if the size of the board of directors increases in the second year of distress, it decreases in the third year. Similar, the ownership of outsider directors, which increases in the second year then decrease in the third year. But, other kinds of corporate governance restructuring for improving independence of board of directors such as multiple reunions, separation of leadership structure and ownership of executives and directors are stable throughout the cycle distress. We find a significant increase in institutional ownership over three year of distress. Survival analysis results show a significant impact of the percentage of independent directors on the firm's survival. The managerial ownership has significant impact on the failure probability. Finally the turnover of the team of mangers can influence significantly the survival of distressed firms.

Keywords: corporate governance restructuring; financial distress; survival analysis; restructuration des structures de gouvernance; détresse financière; analyse de survie (search for similar items in EconPapers)
Date: 2008-05
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00522403
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in LA COMPTABILITE, LE CONTRÔLE ET L'AUDIT ENTRE CHANGEMENT ET STABILITE, May 2008, France. pp.CD Rom

Downloads: (external link)
https://shs.hal.science/halshs-00522403/document (application/pdf)

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:hal:journl:halshs-00522403

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().