Financial Distress, Prediction, and Strategies by Firms: A Systematic Review of Literature

Authors

  • Edmund Bwire Mallinguh
    Affiliation

    Doctoral School of Management and Business Administration, Faculty of Economics and Social Sciences, Szent István University, 2100 Gödöllő, Páter Károly utca 1, Hungary

  • Zoltán Zéman
    Affiliation

    The Institute of Finance, Accounting and Controlling, Faculty of Economics and Social Sciences, Szent István University, 2100 Gödöllő, Páter Károly utca 1, Hungary

https://doi.org/10.3311/PPso.13204

Abstract

The paper is systematic scrutiny of studies on financial distress, prediction, and strategies firms adapt to deal with the difficulty. To this end, the paper offers a dissection and assortment of 72 articles published between 2005 and 2017 in Scopus, Web of Science, and Science Direct. The authors chose the three databases as articles that are published only in indexed journals. The studies were selected based on the key terms "financial distress", "financial strategies", "financial distress prediction", and "financial distress strategies". The selected articles were evaluated based on seven categories: content, methodology, scope, and data analysis techniques, study period, study focus, and data analyzed. The evaluation and assortment of studies identified existing disparities in the literature on financial distress, offering opportunities for future researchers. Exceptional articles on financial challenges, prediction, and strategies adopted by firms were identified. The study finds that most of the studies centered on mature economies, whereas those on emerging markets-focused only on Asian markets. Equally, there are very few qualitative studies on the subject matter. Through the study, the authors paint a picture of existing literature on the subject matter; further, the authors expect the review to stimulate debate and further research among scholars.

Keywords:

distress, prediction, strategies, financial

Published Online

2020-08-17

How to Cite

Mallinguh, E. B., Zéman, Z. (2020) “Financial Distress, Prediction, and Strategies by Firms: A Systematic Review of Literature”, Periodica Polytechnica Social and Management Sciences, 28(2), pp. 162–176. https://doi.org/10.3311/PPso.13204

Issue

Section

Articles