Företagsrekonstruktion : I de finansiella nyckeltalens perspektiv
Abstract (Summary)Year 1996 a new law was introduced in Sweden, the law of corporate restructuring, what purpose was to help companies in financial distress. Now, nine years later the procedure hasn’t been successful. This is what this thesis is trying to find out.This thesis main question is: What distinguishes the companies that have filed for a corporate restructuring, according to the financial position?The purpose of this thesis is to find out if key ratios can be used to distinguish the companies that filed for corporate restructuring. This is studied through a couple of key ratios which is calculated from four years (2000-2003) prior to the decision of corporate restructuring (2004). The key ratio that I have chosen is: a profitability ratio, return on assets, cash ratio and solvency.The method I have used is a quantitative method and a hypothesis testing procedure is used to statistically distinguish the restructuring companies. Two control populations were used to compare with restructuring companies, bankrupt companies and companies that aren’t in financial distress. 21 restructuring companies, 79 bankrupt companies and 97 healthy companies were used in the research.The result of the thesis shows that the companies that filed for corporate restructuring has a much weaker financial position than the healthy companies. This tells us that these companies are in a relatively deep financial distress. In comparison with the bankrupt companies so are the restructuring companies in a better financial position under the two years prior to the restructuring decision. During these years the bankrupt companies’ financial position worsens faster than the restructuring companies. This could be a sign, that with a slower impairment the companies should be reconstructed instead of putting it into bankruptcy.
Source Type:Master's Thesis
Date of Publication:06/13/2005