How can I go about researching the relationship between investors and their benefit to a troubled market?

Question

As our economy is headed south some people are wondering if investers help soften the blow. If so where can I get the statistics.

Answer 1

you might check academic journals for statistics on turnarounds of distressed companies.

or you might have to look at it case by case where investors came in and took an active role in improving a company's operations.

private equity investors often take active roles in managing companiies they invest in.  research KKR and see how they've done it.

also research the Turnaround Management Consulting business to see what steps they use to get investors in to provide short term working capital,etc to help a distressed company out.

also look at examples of chapter 11 bankruptcy reorgs where investors were brought in, or new rounds of financing were held to incrase cash positions.   run a screen for recent ch 11 filers, and check the liability side of the balance sheet, and also for any private equity offerings including convertible debt, which investors often use to maximize their returns.

also research well known shareholder activists such as Carl Icahn,etc.

Answer 2

It is awful. Best stay in cash.

Answer 3

You might find some research on that subject here in the finance or economics section.