Globalization has precipitated movement of output and employment between regions. We examine
factors related to corporate financial distress across three continents. Using a multidimensional
definition of financial distress we test three hypotheses to explain financial distress using historical
financial data. A null hypothesis of a single global model was rejected in favor of a fully relaxed
model which created individual financial distress models for each region. This result suggests that
despite other indications of worldwide convergence, international differences in accounting rules,
lending practices, managements skill levels, and legal requirements among others has kept
corporate decline from becoming commoditized.