TURNAROUND ACTIONS, CONTINGENCY INFLUENCES, AND PROFITABILITY - THE CASE FOR SLACK AND CAPITAL INTENSITY

Using a sample of 172 publicly traded, small manufacturing firms drawn from four industry groups, this study examined the moderating effects of two contingency variables on the relationships between short-term turn-around actions and financial performance. Results provide evidenc e of moderating effects of slack and capital intensity. The average im provement in estimation stemming from a high versus low split of sampl e turnaround firms was also found to be notable in both cases. Implica tions for researchers and practitioners are suggested.