The Ins and Outs of Corporate Bankruptcy: Choosing Between Internal Development and External Demands

Authors

William Donoher, Missouri State UniversityFollow

Abstract

This study examined the effects of resource development, resource dependence, and organizational legitimacy on the incidence of bankruptcy using a matched-pair sample of distressed organizations. Consistent with theoretical expectations, both related diversification and the level of discretionary assets at the firm’s disposal negatively related to bankruptcy. Legitimacy, measured by market valuation, mediated the latter relationship, but not the former, suggesting that proper use of internal competencies can offset pressure of lack of support from external constituents.

Volume

3

Issue

1

First Page

183

Last Page

191

DOI

10.58809/TYGZ7619

Comments

For questions contact ScholarsRepository@fhsu.edu

Rights

© Fort Hays State University

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.

Recommended Citation

Donoher, William (2007) "The Ins and Outs of Corporate Bankruptcy: Choosing Between Internal Development and External Demands," Journal of Business & Leadership: Research, Practice, and Teaching (2005-2012): Vol. 3: No. 1, Article 22.
DOI: 10.58809/TYGZ7619
Available at: https://scholars.fhsu.edu/jbl/vol3/iss1/22