Authors: Inmaculada Jimeno-García; María Araceli Rodríguez-Merayo; María Arantzazu Vidal-Blasco
Addresses: Department of Business Management, Valencian International University, C/ Gorgos, 5, 46021 Valencia, Spain ' Department of Business Management, Rovira i Virgili University, Avenida Universidad, 1, 43204 Reus, Tarragona, Spain ' Departament of Business Management, Rovira i Virgili University, Avenida Universidad, 1, 43204 Reus, Tarragona, Spain
Abstract: This paper focuses on the investigation of business failure processes. We consider business failure as a process. We have set two objectives. The first objective is to detect and describe different processes of failure between sample failed companies, as already has been done in previous literature. The second objective is to study the relation between the process that follows a failed company and its final and irreversible situation of business failure. This final situation can be one of the following: to be declared insolvent or in dissolution. In conclusion, on the one hand, we observed that the variables selected permit us to distinguish between different failure processes and, on the other hand, it is found that there is no relation between the failure process and the companies' final situations.
Keywords: bankruptcy; business failure; business interruption; failure process; financial ratios; interruption moment; ratios.
International Journal of Managerial and Financial Accounting, 2017 Vol.9 No.1, pp.68 - 83
Available online: 21 Apr 2017 *Full-text access for editors Access for subscribers Purchase this article Comment on this article