The Effect of Product Development Restructuring on Shareholder Value

• 成果类型: Article
• 署名作者: Jacobs, Brian W.; Singhal, Vinod R.
• 署名单位: Michigan State University; Michigan State University's Broad College of Business; University System of Georgia; Georgia Institute of Technology
• 刊物名称: PRODUCTION AND OPERATIONS MANAGEMENT
• ISSN/ISSBN: 1059-1478
• DOI: 10.1111/poms.12074
• 发表日期: 2014
• 页码: 728-743
• 关键词: PRODUCT DEVELOPMENT; Empirical Research; stock market reaction; Restructuring

摘要

This article examines the effect of product development restructuring (PDR) on shareholder value. The results are based on a sample of 165 announcements made during 2002-2011. PDR announcements are associated with an economically and statistically significant positive stock market reaction. Over a two-day period (the day of the announcement and the day preceding the announcement), the mean (median) market reaction is 1.63% (0.87%). The market reaction is generally positive regardless of the PDR purpose or action. Although the market reaction is more positive for higher R&D intensity firms, it is not directly affected by the firm's prior financial performance or whether the firm's primary PDR objective is to increase revenues or cut costs. However, the interaction between the firm's prior financial performance and its primary PDR objective is significant. For firms that are financial outperformers, the market reaction is more positive if the firm's primary PDR objective is to increase revenues. For financial underperformers, the market reaction is more positive if the firm's primary PDR objective is to cut costs.