Restructuring Measures and Value Creation: The Cgg Case

ESA Lille-2 Working Paper

19 Pages Posted: 12 Oct 2000

See all articles by Eric Séverin

Eric Séverin

University of Lille II - GERME Research Center

Date Written: September 2000

Abstract

This paper chronicles the history of the CGG Company from its founding. CGG, an international provider of geophysical services and of software for seismic data interpretation and processing, faced important difficulties following an economic crisis and a failure in its diversification policy. This paper, in line with clinical studies of the Journal of Financial Economics, attempts both to highlight operational, organisational, strategic and financial responses to distress and to understand their influence on the value creation. This survey suggests that financial distress is not the only reason for restructuring measures taken by CGG. Although financial distress is the main cause of financial and disinvestment measures, its role is only indirect or neutral for the operational and organisational measures. Finally, our results suggest that the impact of each measure depends on its strategical visibility.

Keywords: Difficulty, restructuring, performance, value

JEL Classification: G34

Suggested Citation

Séverin, Eric, Restructuring Measures and Value Creation: The Cgg Case (September 2000). ESA Lille-2 Working Paper, Available at SSRN: https://ssrn.com/abstract=243232 or http://dx.doi.org/10.2139/ssrn.243232

Eric Séverin (Contact Author)

University of Lille II - GERME Research Center ( email )

1, Place Deliote BP 381
Lille, 59000
France

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