Review article
https://doi.org/10.17818/EMIP/2024/1.12
DOES CORPORATE GOVERNANCE CURE FINANCIAL DISTRESS? CASE STUDY ANALYSIS OF DISTRESSED FIRMS
Otivbo Faith Amede
orcid.org/0000-0002-9071-0510
; University of Benin, Faculty of Management Sciences, Department of Accounting
*
Ofuan James Ilaboya
orcid.org/0000-0002-8161-8245
; University of Benin, Faculty of Management Sciences, Department of Accounting
* Corresponding author.
Abstract
The paper examined the concepts of corporate governance and financial distress. This was achieved by a review of case studies. The review of literature showed that few studies have actually attempted to address the question of whether corporate governance can cure a financially distressed firm. In an attempt to fill this gap, the study this paper examined corporate governance cases of firms that were financially distressed or eventually collapsed. The idea is to be able to take a position as to whether corporate governance can be used as an antidote to financial distress. To achieve this objective, the paper conducted a case study analysis of financial distress cases from different jurisdictions (Multinational, African and Nigerian firms). Documentary evidences on financial distress and challenges of corporate governance were also reviewed. The result of the case study analyses showed that corporate governance can be a cure for financially distressed firms with a condition that key stakeholders in the firm implement the corporate governance provisions.
Keywords
Corporate governance; financial distress
Hrčak ID:
317752
URI
Publication date:
11.6.2024.
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