Global Academy of Training and Research Journal

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DOI 10.35609/jfbr.2018.3.2(1)

Reference to this paper should be made as follows: Giriati; Mustaruddin; Rustam, M. (2018). Determinants of the Success of Corporate Recovery in Financial Distressed Company, J. Fin. Bank. Review, 3 (2): 9-14. https://doi.org/10.35609/jfbr.2018.3.2(1)

Received: April 22, 2018 | Accepted: June 30, 2018

Determinants of the Success of Corporate Recovery in Financial Distressed Company
Giriati , Mustaruddin , M.Rustam
University of Tanjungpura Pontianak, Indonesia Abstract

Objective - This study aims to examine and analyze the influence of severity, free assets, company size, asset retrenchment and CEO expertise on the success of recovery companies experiencing financial distress that are listed on the Indonesian Stock Exchange (IDX).

Methodology/Technique - The population used in this study are all companies listed on the Indonesian Stock Exchange between 2011 and 2016. This study uses a simple logistic regression analysis to test the hypotheses.

Findings - The results indicate that free assets and CEO expertise have a significant and positive effect on the success of a company's recovery. Meanwhile, variable severity, asset retrenchment and firm size do not affect the success of the company's recovery.

Type of Paper - Empirical.

Keywords: Turnaround/Recovery; Δ Severity; Free Assets; Company Size; Asset Retrenchment; CEO Expertise.

JEL Classification: G30, G33, G39.

Price: USD 25