Long-run performance of firms emerging from financial distress: empirical evidence from Malaysia
We examine the long-run performance of firms emerging from financial distress in Malaysia. The sample consists of 114 companies listed on the Bursa Malaysia stock exchange that emerged from a financially distressed classification between 2001 and 2014. We investigate whether post-distressed performa...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Oviedo University Press
2018
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| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/25613/1/EBL%207%201%202018%2047%2054.pdf |
| Summary: | We examine the long-run performance of firms emerging from financial distress in Malaysia. The sample consists of 114 companies listed on the Bursa Malaysia stock exchange that emerged from a financially distressed classification between 2001 and 2014. We investigate whether post-distressed performance is similar to the performance of firms of equivalent size and book-to-market ratio and the market indices. The results suggest that firms emerging from financial distress in Malaysia underperform when compared to the performance of firms similar in size and book-to-market ratio and the market indices. This suggests that the post-restructuring performance of firms on the Bursa Malaysia stock exchange that have emerged from financial distress does not improve. |
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