IDEAS home Printed from https://ideas.repec.org/p/eti/dpaper/26040.html

A Comparative Analysis on Turnaround Alternative Dispute Resolution and Civil Rehabilitation

Author

Listed:
  • Peng XU

Abstract

This study investigates the role of turnaround alternative dispute resolution (ADR) in comparison with Civil Rehabilitation. Large firms and firms with more retained losses are more likely to use ADR than Civil Rehabilitation. Highly leveraged firms tend to use Civil Rehabilitation more than ADR. In terms of performance, firms that use ADR firms have lower leverage, better credit scores and higher quick ratios after debt restructuring than firms employing Civil Rehabilitation. Firms that utilize Civil Rehabilitation reduce assets and employment to a greater degree than ADR firms. Operating efficiency improvement and profitability recovery are the same for both treatments. Neither firms utilizing ADR nor those using Civil Rehabilitation reduce trade credit use. These results indicate that economically and financially distressed firms use ADR to restructure their businesses while avoiding financial collapse in bankruptcy.

Suggested Citation

  • Peng XU, 2026. "A Comparative Analysis on Turnaround Alternative Dispute Resolution and Civil Rehabilitation," Discussion papers 26040, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:26040
    as

    Download full text from publisher

    File URL: https://www.rieti.go.jp/jp/publications/dp/26e040.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eti:dpaper:26040. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: TANIMOTO, Toko (email available below). General contact details of provider: https://edirc.repec.org/data/rietijp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.