Financial Distress and Corporate Turnaround

An Empirical Analysis of the Automotive Supplier Industry

​The work of Martin Schmuck empirically investigates the phenomenon of financial distress and corporate turnaround in the automotive supplier industry. Based on a sample of 194 publicly listed automotive suppliers, the effectiveness of managerial, operational, financial, and asset restructuring activities is analyzed in a multivariate research setting. Archetypes for successful turnarounds are identified and matched with strategies of non-distressed companies.

3.1 Definitions 3.1.1 Financial distress The definition of distress in general and
the selection of a distress criterion have major implications on research results,
particularly in empirical research.156 Definitions of what constitutes good and
poor ...