This paper examines the comparative response of multinationals and domestic firms to an economic crisis, using the empirical setting of a well defined case of economic slowdown in Chile. We find that employment in manufacturing plants has been drastically reduced during the economic crisis. Our findings reveal that multinationals are more likely to exit contributing to ...

Abstract Recovery strategy belongs to the group of rescue/reversing business strategies and is used mainly by companies facing financial or other problems which they are trying overcome. Moreover, this alternatively wishing prevent future problems. The overall objective recovery return sluggish situation in terms acceptable levels profitability. implementation turnaround achieved through proper...

Purpose: Against a backdrop of continued weak economic conditions and with many firms experiencing declining financial performance, this paper presents a synthesis of the business turnaround literature. It aims to identify which turnaround and recovery strategies have been effective historically, based on the evidence provided by previous empirical research. Design/methodology/approach: We revi...

In the global economy, firms link with customers and suppliers through a complex nexus of strategically critical interfirm relationships. Due to the diversity of environments and networks involved, these linkages are increasingly vulnerable to catastrophic disruption, i.e., crisis. As such, the authors offer an advanced conceptualization of crisis and explicate the interplay of crisis and inter...

Turkey has experienced two economic shocks, where the second one had devastating effects on the financial sector and real sector. The purpose of this paper is to show the impact of economic crisis on the capital structure of corporations, which are traded in İstanbul Stock Exchange, and the impact of capital structure on the performance of corporations. It is hypothesized that high leverage fir...

We investigate the use of the Hurst exponent, dynamically computed over a weighted moving time-window, to evaluate the level of stability/instability of financial firms. Financial firms bailed-out as a consequence of the 2007–2008 credit crisis show a neat increasewith time of the generalized Hurst exponent in the period preceding the unfolding of the crisis. Conversely, firms belonging to othe...

12 In this paper, we developed and estimated a model of the Thai firm during the crisis. Our results 13 indicate that firms with the highest debt-equity ratios suffered the steepest declines in earnings per 14 share during the crisis from the financial distressed costs. We take this result as strong evidence for 15 the credit channel. Surprisingly, firms with the largest market capitalizations ...

In this paper, we develop a model of dynamic capital structure choice based on a sample of Korean manufacturing firms and estimate the unobservable optimal capital structure using a wide range of observable determinants. Uunbalanced panel data of Korean listed firms for the period 1985 to 2002 is used. In addition to identifying and estimating the effects of the determinants of capital structur...

This paper explores principal-principal conflicts in corporate governance during times of economic crisis. We address the question: What external and internal governance mechanisms can best protect minority shareholders? Drawing on 877 publicly listed large corporations with concentrated ownership in seven Asian countries and regions, we compare different control structures between family firms...