Corporate Restructuring: Film Characteristics and Performance

Fauzias Mat Nor, Norazlan Alias, Mohd Hasimi Yaacob

Abstract


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.
ABSTRAK
Secara teori, penstrukturan semula bertujuan untuk mengalihkan kekangan kewangan dan meningkatkan prestasi firma. Bagaimanapun, pengumuman penstrukturan semula mungkin ditafsirkan berbeza - beza oleh pasaran.
Menggunakan kaedah kajian peristiwa, kajian ini mengkaji impak pengumuman penstrukturan semula oleh beberapa firma terpilih. Secara keseluruhan, pengumuman-pengumuman semula yang dibuat oleh firma- firma tersebut
tidak memberi kesan signifikan ke atas harga saham manakala purata dua tahun pulangan atas aset dan alirtunai operasi selepas pengumuman adalah bercampur- campur. Bukti juga menunjukkan pengurangan hutang, pemfokusan
semula dan pelarasan kepentingan antara pengurusan dan pemegang - pemegang saham melalui pemilikan saham ahli lembaga pengarah tidak menjadi fokus utama beberapa finna selepas penstrukturan semula.


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