Accounting Information And Its Relationship To Corporate Financial Distress Process

Kwabena Anyane-Ntow


This article studies the critical chronological stages of the corporate distress process.  Principal Factor Analysis is used to identify the underlying factors that influence the conditions of firms, as well as factors that account for intergroup differences.  The results indicate that the critical factors associated with financial distress of manufacturing firms differ from those associated with service organizations; these factors also differ among the different groups studied and along the different phases of the financial distress continuum.

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