Document Type
Conference Proceeding
Conference Track
Marketing Management/ Strategy/ Branding
Publication Date
2013
Abstract
Working with a sample of manufacturing and non-manufacturing firms that filed for bankruptcy protection between 1980 and 2009, the current study examines the relationship between investments in intangibles and the likelihood that the bankrupt firm will either be reorganized or face liquidation. Results for the manufacturing sub-sample show that R&D is the only significant variable associated with liquidation. Over-investment in R&D appears to increase the likelihood of liquidation. Similarly, results for the non-manufacturing sub-sample show that over-investment in advertising appears to increase the likelihood of liquidation. Our conclusion is that firms that are forced to liquidate are often guilty of over-investing in intangible assets.
Copyright Statement / License for Reuse
Digital Commons@Georgia Southern License
Recommended Citation
Heiens, Richard A.; Leach, Robert T.; and Newsom, Paul D., "The Relationship Between Investments in Intangible Resources and Liquidation for Financially Distressed Firms" (2013). Association of Marketing Theory and Practice Proceedings 2013. 21.
https://digitalcommons.georgiasouthern.edu/amtp-proceedings_2013/21
About the Authors
Richard A. Heiens earned his Ph.D. in Marketing from Florida State University in 1993. He is currently serving as the Water F. O’Connell Palmetto Professor of Marketing at the University of South Carolina Aiken. He has published his research in a variety of academic journals, including the Strategic Management Journal, the Journal of Business and Industrial Marketing, the Journal of Strategic Marketing, and the Academy of Marketing Science Review.
Robert T. Leach earned his Ph.D. in Finance from Kent State University in 1997. He is currently serving as a Professor of Finance at the University of South Carolina Aiken, and also serves as an Affiliate Instructor of Finance at the University of Arkansas. He has published his research in a variety of academic journals, including the Journal of Banking and Finance, the Journal of Business Finance and Accounting, the International Journal of Intelligent Systems in Accounting, Finance, and Management, and Wirtschafts Politische Blätter.
Paul D. Newsom earned his Ph.D. in Finance from the University of Arkansas in 2003. He also holds a B.S. in Pharmacy from Butler University. In his academic career, he has served as an Assistant Professor of Finance at Valparaiso University and is currently serving as an Assistant Professor of Finance at the University of South Carolina Aiken.