Selecting Restructuring Strategies for Sick Companies: Incorporating the Decision-Making Element

15 Pages Posted: 27 Jul 2007 Last revised: 28 Mar 2008

See all articles by Arvind Ashta

Arvind Ashta

CEREN EA 7477 Burgundy School of Business - Université Bourgogne Franche-Comté

Francisco Diaz Bretones

University of Granada

Lionel Tolle

affiliation not provided to SSRN; Université de Bourgogne - LATEC; Université de Bourgogne - Burgundy School of Business; Université de Bourgogne - Institut d'Administration des Entreprises Dijon (IAE Dijon)

Date Written: 2005

Abstract

The paper provides a review of features of restructuring strategies, indicating that distress may limit the choice available. It then introduces the decision theory to show that the final choice may be influenced by objective criteria and by subjective or non-rational criteria as well as by social interactions. The authors propose a framework in which organizational and environmental variables, along with restructuring methods, influence the decision-making of restructuring strategy selected for declining companies.. The authors provide a multidisciplinary point of view in which they consider such metrics as social and psychological variables in the study of decision in sick companies.

A more recent adaptation of this paper has been published under the title Behavioral Influences in Selecting Restructuring Strategies for Sick Companies in ICFAI Journal of Behavioral Finance, December 2007

Keywords: Bankruptcy, decision, distress, psychology, recovery, strategy, behavior, merger, alliances

JEL Classification: G33, G34, D7, D8, M51

Suggested Citation

Ashta, Arvind and Bretones, Francisco Diaz and Tolle, Lionel, Selecting Restructuring Strategies for Sick Companies: Incorporating the Decision-Making Element (2005). Available at SSRN: https://ssrn.com/abstract=1003214 or http://dx.doi.org/10.2139/ssrn.1003214

Arvind Ashta (Contact Author)

CEREN EA 7477 Burgundy School of Business - Université Bourgogne Franche-Comté ( email )

29 rue Sambin
21000 Dijon
France

Francisco Diaz Bretones

University of Granada ( email )

School of Labour Sciences
C/Rector López Argueta S/N
Granada, Granada 18071
Spain

Lionel Tolle

affiliation not provided to SSRN ( email )

No Address Available
+33 (0)6.81.90.21.08 (Phone)

HOME PAGE: http://lionel.tolle.free.fr

Université de Bourgogne - LATEC ( email )

Pôle d'Economie et de Gestion
21066 Dijon Cedex
France

Université de Bourgogne - Burgundy School of Business ( email )

29 rue Sambin
Dijon, 21006
France

Université de Bourgogne - Institut d'Administration des Entreprises Dijon (IAE Dijon) ( email )

2, Bd Gabriel, BP 26611
Pole d'economie et de gestion
Dijon, 21066
France

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