"More economic distress causes people to rent more, and, in fact, one of the storage companies said recently that Detroit was one of the best markets".
Although the factors determining internal distress causes are defined ex-ante, researchers face endogeneity problems (Giroud et al. 2012).
Various turnaround moves yield inconclusive results, or even reverse effectiveness, when explicitly accounting for exogenous distress causes (Mitchell and Mulherin 1996).
A lack of empirical research to compare various turnaround strategies, contingent on root causes, becomes evident when summarizing the work on underlying distress causes as contextual factors.
Firm-specific distress causes, such as high leverage, low operating profitability, or overexpansion, fall under the managers' potential influence and are thus often observed as endogenous root causes.
Comprising factors that are not directly influenced by the firm's management are leaps in competition or sudden technology changes, industry conditions, or legislation changes, external distress causes are not directly influenced by the firm's management (Mellahi and Wilkinson 2004).
