In this paper, we investigate whether and how institutional investors' site visits affect the financial distress of listed companies. By employing Chinese firms listed on the SZSE from 2013 to 2021, we find that institutional investors' site visits significantly restrain financial distress and...

In this paper, we investigate whether and how institutional investors’ site visits affect the financial distress of listed companies. By employing Chinese firms listed on the SZSE from 2013 to 2021, we find that institutional investors’ site visits significantly restrain financial distress...

We examine a simple measure of operating leverage: the ratio of fixed costs (measured by depreciation and amortization plus selling, general, and administrative expenses) to the market (or book) value of assets. We find that this measure of operating leverage positively predicts returns....