Change search
ReferencesLink to record
Permanent link

Direct link
Corporate Governance and Restructuring Activities following Completed Bids
School of Economics, Finance, and Marketing, Royal Melbourne Institute of Technology University (RMIT) University.
2011 (English)In: Corporate governance: An International Review, ISSN 0964-8410, E-ISSN 1467-8683, Vol. 19, no 1, 61-76 p.Article in journal (Refereed) Published
Abstract [en]

Research Question/Issue: We examine the extent to which effective corporate governance impacts three restructuring choices following completed acquisitions – significant adjustment to workforce; sale of subsidiaries; and further acquisitions. We also investigate the relative firm performance in the post-restructuring period for the three respective options examined.

Research Findings/Insights: Based on a sample of 649 US firms between the period 1991 and 2009, we find support for the assertion that corporate governance impacts layoffs and further acquisitions. We, however, find no evidence to support a measurable governance effect on divestiture likelihood. In examining the post-acquisition performance following restructuring, we find no significant difference in performance between acquirers that made further acquisitions and those that did not. There is evidence, however, suggesting that acquirers who laid off workers and those that divested assets performed significantly poorer relative to a comparable group of acquirers.

Theoretical/Academic Implications: This study adds to the empirical literature on the relation between governance and restructuring choices. We provide evidence on the impact of governance on restructuring choices that has not been documented in the academic literature. An implication of this study is that performance in post-restructuring period would not necessarily be enhanced even when governance exerts positive influences on restructuring choice.

Practitioner/Policy Implications: Our empirical results demonstrate the relative importance of corporate governance in organizational strategic choices. This study offers insights to stakeholders interested in enhancing governance structures to influence restructuring decisions following completed bids.

Place, publisher, year, edition, pages
2011. Vol. 19, no 1, 61-76 p.
National Category
Business Administration
URN: urn:nbn:se:su:diva-63911DOI: 10.1111/j.1467-8683.2010.00833.xOAI: diva2:453440
Available from: 2011-11-02 Created: 2011-11-02 Last updated: 2011-11-09Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full text

Search in DiVA

By author/editor
Graham, Michael
In the same journal
Corporate governance: An International Review
Business Administration

Search outside of DiVA

GoogleGoogle Scholar
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Altmetric score

Total: 164 hits
ReferencesLink to record
Permanent link

Direct link