Financial distress and corporate turnaround strategies
: an empirical analysis of 11 US industries

  • Diogo Miguel Pacífico Ramalho (Student)

Student thesis: Master's Thesis


In this dissertation, extant research and analysis of corporate restructuring strategies for 11 U.S industries have been conducted. One set out to analyze the effectiveness of restructuring strategies in each industry as well as for a unique model that comprises all sample firms and controls for industry specificness. Hence, an extensive empirical study that shall consist of 2471 financially distressed companies divided between 11 U.S industries for a period of time between 2000 and 2018 was considered, tacking their turnaround strategies during the post-distress situation. The strategies analyzed were operational restructuring actions, financial restructuring decisions, and asset-based considerations. Additionally, context variables were considered, such as firm size, the company’s prior performance, distress severity, and the firm’s financial capacity. Considering the modeling aproach, a univariate analysis was conducted for each industry, followed by a multivariate logistic applied as well to the same industries and to the final Model. The results obtained showed that operational restructuring actions play a crucial role in each firm’s turnaround process. Additionally, the study shows that managers from U.S companies, during the time-span considered, gave more importance to financial restructuring actions despite the strategies' effectiveness.
Date of Award28 Jan 2021
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorRicardo Ferreira Reis (Supervisor)


  • Financial distress
  • Corporate turnaround
  • Non-financial industries
  • U.S.
  • Corporate restructuring
  • Altman Z-Score


  • Mestrado em Gestão e Administração de Empresas

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