Corporate Restructuring: Firm Characteristics and Performance

Jurnal Pengurusan 27(2008) 129-141

14 Pages Posted: 27 Jun 2019

See all articles by Fauzias Mat Nor

Fauzias Mat Nor

National University of Malaysia (UKM) - Graduate School of Business

Norazlan Alias

affiliation not provided to SSRN

Mohd Yaacob

National University of Malaysia (UKM)

Date Written: June 25, 2008

Abstract

Theoretically, corporate restructuring is meant to remove firms' operating and financial constraints and improve firms performance. However, corporate restructuring announcement might be interpreted differently by the market. Using event-study method, this study examines the impact of corporate restructuring announcements made by selected firms on their stock prices. Overall, the effect of the restructuring announcements, made by these companies on stock prices was significant while the average two years of return on total assets and return on operating cash flow in the post restructuring period were mixed. Evidence also indicates that debt reduction, refocusing and alignment of interest between management and shareholders through board of directors' ownership do not constitute the main focus for some firms in the post restructuring period.

Keywords: Corporate Restructuring, Firm Characteristic

JEL Classification: G32, G34

Suggested Citation

Mat Nor, Fauzias and Alias, Norazlan and Yaacob, Mohd, Corporate Restructuring: Firm Characteristics and Performance (June 25, 2008). Jurnal Pengurusan 27(2008) 129-141, Available at SSRN: https://ssrn.com/abstract=3409605 or http://dx.doi.org/10.2139/ssrn.3409605

Fauzias Mat Nor

National University of Malaysia (UKM) - Graduate School of Business ( email )

UKM-Graduate School of Business,
The National University of Malaysia
Bangi, Selangor 43600
Malaysia

Norazlan Alias

affiliation not provided to SSRN

Mohd Yaacob (Contact Author)

National University of Malaysia (UKM) ( email )

43600 Bandar Baru Bangi
Bangi, Selangor 06010
Malaysia

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