Abstract
We investigate the relationship between bankruptcy risk and expected future sales growth for Norwegian non-listed rms for the period 1988-2007. We nd that rms with high bankruptcy risk also have high expected future growth. Financial ratios characterizing rms with high bankruptcy risk also characterize rms with high future expected growth. Small rms, rms with low levels of equity and retained earnings, rms with low protability and low levels of sales per unit of capital, have all higher expected future growth rates than other rms. These ndings suggest a tradeo between the upside potential of high growth and the downside risk of bankruptcy.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
