The Korean Journal of Financial Management (재무관리연구)
- Volume 25 Issue 1
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- Pages.141-176
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- 2008
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- 1225-0759(pISSN)
A Study on the Stock Performance of Distressed Restructurings
구조조정기업의 주식성과에 관한 연구
- Jang, Beom-Sik (College of Business and Economics, Soongsil University) ;
- Hwang, In-Deok (Korea Ratings Corporation)
- Published : 2008.03.01
Abstract
This study provides an analysis of ex post efficient outcome, which can be said an objective of distressed restructurings, using the stock return of listed companies. The findings of this study are as follows: First, upon completing the distressed restructurings, reorganization and workout cases showed positive announcement effects, which was statistically significant. Also, composition cases displayed a positive value, but it was not statistically significant. Second, with respect to post-restructuring long-run stock performance, reorganization and composition showed underperformance after completion. However, workout cases showed overperformance after the completion. Third, multiple regression analysis to find factors affecting post-restructuring long-run stock performance suggests that higher asset decrease(ASSETCH), shareholder concentration (OWNCEN), largest shareholders' stake(OWN) have more positive impacts on long-run performance. However, change of the largest shareholder(OWNERCH) has negative impacts on long-run performance. Finally, change of the largest shareholder is a negative factor in the performance of the distressed restructurings. Therefore, this study implies that if M&A is used as a way of early completing the distressed restructurings, prudent judgment is required on whether a firm can recover its competitiveness and is likely to be economically viable again.
본 연구는 기업도산절차의 목표라 할 수 있는 사후적 효율성(ex post efficient outcome) 을 분석한다.
Keywords