It is the goal of this paper to provide an overview of empirical studies that might give evidences on how shareholder value responds to different modes of restruc-turing. Due to the restriction in pages, this study will give an insight in different modes of restructurings but will not go into detail on how corporate restructuring influences the shareholder value for specific regions or industries. Rather, the aim is to present a compact picture of the restructuring results which serve as an “appetizer” for further in depth readings about this topic.
To do so, this paper will approach the subject step by step:
The first part of this paper deals with fundamentals of corporate restructuring. It de-fines the term “shareholder value” and explains different approaches of how an effect of corporate restructuring can be measured monetarily. Furthermore, the term “corpo-rate restructuring” and the different changes in the firm’s portfolio, organization, or capital structure are described and categorized in an easily memorable model. The second part of the paper presents different important empirical studies of whether and how restructuring effects shareholder value. The model, described in the first part, is being employed to structure these findings and is being combined with the positive or negative impacts of the conducted method of restructuring. Lastly, the third part will briefly summarize the introduced effects on shareholder value and will give advice as to which forms of restructuring should be accomplished to enhance the overall economic performance of the firm and therefore the shareholder value.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Fundamentals of Corporate Restructuring - Terms and Definitions
- How to Measure Shareholder Value Creation
- Corporate Restructuring - Definitions and Classifications
- Portfolio Restructuring
- Financial Restructuring
- Organizational Restructuring
- Empirical Evidence on Value Creation of Corporate Restructuring
- Portfolio Restructuring and Shareholder Value
- Mergers and Acquisitions
- Spin-Offs
- Sell-Offs
- Financial Restructuring and Value Creation
- Share Repurchase
- Management Buy-Outs (MBOs) and Leveraged Buy-Outs (LBOs)
- Organizational Restructuring and Value Creation
- Layoffs, the effect of downsizing a company
- Organizational Restructuring of Company Divisions
- A Guideline to Value Creation
- Information Policy
- Consistency
- Conclusion and Implications
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to provide an overview of empirical studies on the effects of corporate restructuring on shareholder value. It analyzes various restructuring methods and their impact on company performance and shareholder satisfaction. The paper explores the relationship between restructuring and shareholder value creation, examining both positive and negative outcomes.
- Measuring Shareholder Value Creation
- Classifying and Defining Corporate Restructuring
- Empirical Evidence on Shareholder Value Effects
- A Guideline for Value Creation
- Implications of Corporate Restructuring
Zusammenfassung der Kapitel (Chapter Summaries)
The first chapter introduces the concept of shareholder value and explores different methods for measuring its creation. It also defines "corporate restructuring" and categorizes various restructuring methods, including portfolio, financial, and organizational restructuring.
The second chapter presents empirical evidence on how different restructuring strategies affect shareholder value. It analyzes the impact of portfolio restructuring (including mergers and acquisitions, spin-offs, and sell-offs), financial restructuring (including share repurchase and MBOs/LBOs), and organizational restructuring (including layoffs and division restructuring).
Schlüsselwörter (Keywords)
The key terms and concepts discussed in this paper include shareholder value, corporate restructuring, portfolio restructuring, financial restructuring, organizational restructuring, mergers and acquisitions, spin-offs, sell-offs, share repurchase, MBOs, LBOs, layoffs, downsizing, and organizational restructuring of divisions.
- Quote paper
- Arne Hildebrandt (Author), 2004, Empirical evidence on shareholder value effects of corporate restructuring, Munich, GRIN Verlag, https://www.grin.com/document/37324
