The Effect of Turnaround Strategies on China Special Treatment Company

• Main Author: 吳思嫻
• Other Authors: 林宛瑩
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/59757942011205574186

碩士 === 國立政治大學 === 會計研究所 === 96 === Put listed companies under special treatment (ST) is a mechanism implemented in China capital market for suspending and terminating listed companies that suffer continuous losses. Based on a sample of 134 ST firms over the period of 1998 to 2008, this research investigates the types and their related effects of turnaround strategies employed by the China ST companies. The univariable anaysis shows that the turnaround ST firms are more inclined to adopt strategies associated with operating and asset restructuring activities, while the firms failed to recover are more likely to adopt strategies related to managerial and financial restructuring activities. In the regression analysis, the empirical results show that turnaround strategies have incremental explanatory power beyond the control variables. In addition, the findings also indicate that strategies related to managerial restructuring (changes in board directors or managers), operating restructuring (cost reduction, revenue generation and sales of fixed assets) and asset restructuring (improve information system and the relationship with strategic alliance) activities contribute most to successful corporate turnarounds. However, inconsistent with the expectation, the strategy related to financial restructuring activities is negatively associated with the ST turnaround.