Financial health and airline safety
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Gregory Noronha; Vijay Singal
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Article
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2003
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John Wiley and Sons
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English
β 173 KB
## Abstract Agencyβcost models suggest that firms may pursue riskier strategies in times of financial distress. For example, stockholders of financially weak firms in industries where quality cannot be observed __exβante__ have an incentive to compromise safety and quality to maximize current perio