Corporate restructuring: film characteristics and performance
Theoretically, corporate restructuring is meant to remove firms' operating and financial constraints and improve firm perfonnance. However, corporate restructuring announcement might be interpreted differently by the market. Using event-study method, this study examines the impact of corporate...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2008
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| Online Access: | http://journalarticle.ukm.my/8083/ http://journalarticle.ukm.my/8083/ http://journalarticle.ukm.my/8083/1/851-1625-1-SM.pdf |
| Summary: | Theoretically, corporate restructuring is meant to remove firms' operating and financial constraints and improve firm perfonnance. 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 firm 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 finns in the post restructuring period. |
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