Browse > Article
http://dx.doi.org/10.14400/JDC.2020.18.6.217

Corporate Life cycle and Restructuring  

Kim, Jeong-Kyo (School of Business, Pusan National University)
Kim, A-Hyeon (School of Business, Pusan National University)
Publication Information
Journal of Digital Convergence / v.18, no.6, 2020 , pp. 217-223 More about this Journal
Abstract
The purpose of this study is to examine the restructuring strategies that are selected according to the corporate life cycle and to provide evidence that restructuring strategies that are chosen when firms face financial difficulties can have a positive impact on corporate restructuring. This study is logistic regression analysis of 3,593 samples of companies listed on Korea Exchange from 2001 to 2016. The results of this study show that a company that is growing through the expansion of its size and investment can overcome the financial difficulties of the company. And this study finds evidence that the declining firms use the capital increase or debt issuance to revive the corporate regeneration. The results of this study suggest that it is important to consider the life cycle at the time of corporate restructuring and select the appropriate strategy accordingly.
Keywords
Corporate life cycle; Business restructuring; Asset restructuring; Financial restructuring; Financial distress; Corporate Reorganization;
Citations & Related Records
Times Cited By KSCI : 4  (Citation Analysis)
연도 인용수 순위
1 D. Miller & P. Friesen. (1984). A longitudinal study of the corporate life cycle. Management Science 30, 1161-1183.   DOI
2 M. C. Jensen. (1989). Eclipse of the public corporation, 61-.74.
3 R. B. Whitaker. (1999). The early stages of financial distress. Journal of Economics and Finance, 23(2), pp.123-132.   DOI
4 J. Anthony & K. Ramesh. (1992). Association between accounting performace measures and stock prices. Journal of Accounting and Economics 15:203-227.   DOI
5 J. Atanassov & E. H. Kim. (2009). Labor and corporate governance: International evidence from restructuring decisions. The Journal of Finance, 64(1), 341-374.   DOI
6 D. Cohen, R. Mashruwala & T. Zach. (2010). The use of advertising activities to meet earnings benchmarks: Evidence from monthly data. Review of Accounting Studies, 15(4), 808-832.   DOI
7 D. Mueller. (1972). A life cycle theory of the firm. Journal of Industrial Economics, 20, 199-219.   DOI
8 Gort & Kleeprt. (1982). Time Paths in the Diffusion of Product Innovations. The Economic Journal, 92(367), 630-653.   DOI
9 D. Denis & T. Kruse. (2000). Managerial discipline and corporate restructuring following performance declines. Journal of Financial Economics, 55(3), 391-424.   DOI
10 S. Sudarsanam & J. Lai. (2001). Corporate financial distress and turnaround strategies: an empirical analysis. British Journal of Management, 12(3), 183-199.   DOI
11 H. DeAngelo. L. DeAngelo & R. M. Stulz (2006), Dividend Policy and the Earned Contributed Capital Mix: a Test of the Life-cycle Theory, Journal of Financial Economics, 81(2), 227-254.   DOI
12 Y. Chen., F. Weston. & E. Altman. (1995). Financial distress and restructuring models. Financial Management, 24, 57-75.
13 S. J. Park, E. B. Jin & K. I. Han. (2012). The Study of the accural according to Corporate Life Cycle. Journal of Digital Convergence, 10(7), 77-83.   DOI
14 J. H. Kim, J. B. Kim & J. M. Choi. (2017). The Corporate Life Cycle and Management Compensation. Journal of Digital Convergence, 15(1), 85-96.   DOI
15 L. L. Wang & C. L. Qing. (2019). An Empirical Study on the Effect of R&D Investment on Business Performance by Life Cycle - Focus on China's Small and Medium-sized Enterprises(SME). Journal of Digital Convergence, 17(6), 43-49.   DOI
16 J. K. Kang & A. Shivdasani. (1997). Corporate restructuring during performance declines in Japan. Journal of Financial economics. 46(1), 510-.546.
17 N. Chen & F. Zhang. (1998). Risk and return of value stocks. The Journal of Business. 71(4), 501-535.   DOI
18 E. Black. (1998). Life-cycle impacts on the incremental value-relevance of earnings and cash flow measures. The Journal of Financial Statement Analysis, 4, 40-56.