This study examined the effects of institutional factors, including; board size, blockholder ownership, and political connections, as some of the determinants (apart from various company-level financial variables) on the outcomes of financially distressed listed companies in Malaysia. A highly concentrated ownership structure is common in most developing countries, including Malaysia. Besides, Malaysia has a unique disclosure environment where all listed companies must release relevant and adequate information to the public to improve investors' protection and corporate transparency. Therefore, Practice Notes which are standards and measures for Malaysian Listed Companies, are designed to help listed companies that are financially distressed to restructure their debts within a stipulated time, giving them sufficient time to re-emerge in the exchange. The logistic regression analysis results on a sample of financially distressed Malaysian public listed companies suggested that; interest coverage ratio, stock returns, blockholder ownership, and political connections were significance at the 5% level. The institutional variables suggested that blockholder ownership and political connectedness had a positive and significant effect on the possibility of companies emerging from financially distressed conditions. The findings have provided important practical implications for managers and potential investors in their risk management decisions.