HCBE Faculty Articles
Title
Corporate Multinational Flexibility Option and Bankruptcy Resolution
Document Type
Article
Publication Date
12-2013
Publication Title
International Review of Management and Business Research
ISSN or ISBN
2306-9007
Volume
2
Issue/Number
4
First Page
937
Last Page
950
Abstract/Excerpt
This study is to examine the effects of a firm’s multinational flexibility option on the outcomes of Chapter 11 and durations in the process. For a sample of 403 U.S. companies that filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code, we find that multinational enterprises (MNEs) are more likely to emerge from Chapter 11 than domestic enterprises (DEs). Further examination finds that foreign sales ratio is not a significant predictor of successful emergence from Chapter 11, but foreign asset ratio and the number of foreign countries with a revenue-generating subsidiary improve the likelihood of emergence from Chapter 11, suggesting the advantages of multinational network such as operating flexibility, tax savings, and financing advantage.
NSUWorks Citation
Baek, Hyungkee Young and Kim, Dong-Kyoon, "Corporate Multinational Flexibility Option and Bankruptcy Resolution" (2013). HCBE Faculty Articles. 789.
https://nsuworks.nova.edu/hcbe_facarticles/789
