A financial distress prediction model based on cash flow;
The Trade Off theory says that a firms adjustment toward an optimal leverage is influenced by three factors namely taxes, costs of financial distress and agency costs.
The only sign of apparent financial distress has been a largely unexplained capital infusion of $2.5 billion by the Bank of China into its Hong Kong-listed affiliate.
Moreover, size and cost of financial distress are the most important factors for hedging decision.
Companies that are consistently unprofitable (e.g. Motorola) face diminishing degrees of strategic freedom further lubricating a downward slope toward financial distress.
If dealt with improperly, financial distress will not only effect enterprise's daily work, But also result in bankruptcy when gravely.
Middle and small enterprises financial distress and countermeasures;
But even in Australia, a country with economic growth, rising corporate profits and stable home prices, there is growing financial distress.
financial distress
