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Financial Information and Voluntary Administration Outcomes - Evidence from Australian Listed Public Companies
Journal article   Open access   Peer reviewed

Financial Information and Voluntary Administration Outcomes - Evidence from Australian Listed Public Companies

James Routledge and David Gadenne
Accounting, Accountability & Performance, Vol.11(1), pp.74-95
2005
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Abstract

Accounting, Auditing and Accountability insolvency voluntary administration
Introduction of the statutory voluntary administration (VA) process in mid 1993 represented a significant change to corporate insolvency law in Australia in providing greater opportunity for companies to attempt to resolve their financial distress. The focus of this paper is on the relationship between financial information available at the time a company enters VA and the VA outcome. In particular, we explore how financial information that indicates a company's capacity to restructure its debt and assets relates to the VA outcome. Our analysis indicates that a company's ability to restructure its debt contracts is critical to the fate of companies that enter VA.

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