Managerial discipline and corporate restructuring following performance declines

• 成果类型: Article
• 署名作者: Denis, DJ; Kruse, TA
• 署名单位: Purdue University System; Purdue University; Loyola University Chicago
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/S0304-405X(99)00055-0
• 发表日期: 2000
• 页码: 391-424
• 关键词: Management turnover; takeovers; Restructuring

摘要

We examine the incidence of disciplinary events that reduce the control of current managers, and corporate restructuring among firms experiencing a large decline in operating performance during an active takeover period (1985-1988) and a less active period (1989-1992). We document a significant decline in the disciplinary events from the active to the less active period that is driven by a significant decline in disciplinary takeovers, those takeovers that result in a top executive change. Following the performance decline, however, there is a substantial amount of corporate restructuring, and a significant improvement in operating performance, during both the active and the less active takeover period. We conclude that, although some managerial disciplinary events are related to overall takeover activity, the decline in takeover activity does not result in fewer performance-enhancing restructurings following performance declines. (C) 2000 Elsevier Science S.A. All rights reserved. JEL classification. G32; G34.