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Leveraging financial innovation for corporate turnarounds: A strategic framework for distressed enterprises

Year: 2025

Type: article

Abstract: The resurgence of financial distress across multiple industries has renewed scholarly and managerial interest in corporate turnaround strategies. Traditional approaches to turnaround focused primarily on operational restructuring and cost control have proven inadequate in a financial landscape characterized by rapid technological change, volatile capital markets, and complex stakeholder dynamics. This review critically examines the role of financial innovation as a strategic enabler of corporate recovery and renewal. Drawing on literature from corporate finance, strategic management, and financial technology, it argues that innovative financial instruments, restructuring mechanisms, and governance models can provide distressed enterprises with the flexibility and resilience needed to restore solvency and competitiveness. The paper synthesizes theoretical and empirical insights to propose an integrative framework for financial innovation driven turnarounds, highlighting implications for managers, investors, and policymakers.

Source: World Journal of Advanced Research and Reviews

DOI: 10.5281/zenodo.17826203

Authors: Porter, Victoria, Porter, Edward, T.O, Taoheed

Institutions: University of North Carolina at Chapel Hill, Harvard University, National Open University of Nigeria

Language: English

Topic: Corporate Insolvency and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: hybrid

OpenAlex ID: W7108985709

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