Financial Distress and Corporate Turnarounds – a study of twenty-eight firms that failed during the Swedish financial crisis of the 1990s.

This paper uses accounting data to investigate whether the performance of firms improved after a significant fraction of the ownership in the firms were taken over by Addum or Borgkronan. In addition, the changes in the governance, the restructuring activities as well as the approaches taken to solve incentive problems between managers and owners under the new ownership structure is explored. Addum and Borgkronan are subsidiaries to the Swedish "bad banks" Retriva and Securum.