A STUDY ON FINANCIAL DISTRESS AND FIRM’S PERFORMANCE WITH REFERENCE TO TEXTILE INDUSTRIES IN TIRUPUR DIST

This study is about “financial distress and firm performance” finance is the soul of whole organizations Financial distress is a loose term referring to various adverse situations a business or person faces. In the corporate setting, financial distress invariably translates into near-insolvency, bankruptcy, emergency-scenario borrowings and turnaround work. Simply put, a business facing financial distress generally faces a cash crunch, cannot repay -- or is having a hard time repaying -- its debts. A situation where a firm’s operating cash flows are not sufficient to satisfy current obligations and the firm is forced to take corrective action. Financial distress may lead a firm to default on a contract, and it may involve financial restructuring between the firm, its creditors, and its equity investors.