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Issue 5(1), October 2010 -- Paper Abstracts
Girard  (p. 9-22)
Cooper (p. 23-32)
Kunz-Osborne (p. 33-41)
Coulmas-Law (p.42-46)
Stasio (p. 47-56)
Albert-Valette-Florence (p.57-63)
Zhang-Rauch (p. 64-70)
Alam-Yasin (p. 71-78)
Mattare-Monahan-Shah (p. 79-94)
Nonis-Hudson-Hunt (p. 95-106)



JOURNAL OF ACCOUNTING AND FINANCE

Do Restructurings Improve Post-restructuring Productivity?

Author(s): Menghistu Sallehu
Citation: Menghistu Sallehu, (2017) "Do Restructurings Improve Post-restructuring Productivity?," Journal of Accounting and Finance, Vol. 17, Iss. 1, pp.  103-123

Article Type: Research paper

Publisher: North American Business Press

Abstract:

This study examines how normal and excess restructuring charges affect future productivity. I estimate normal restructuring charges necessitated by economic fundaments using a Tobit model. Next, I estimate post-restructuring firm productivity using Data Envelopment Analysis and investigate how normal and excess restructuring charges are associated with future productivity. Using a sample of 1,182 restructurings by 398 unique U.S. firms, I show that normal restructuring charges lead to improvement in future productivity while excess restructuring charges are associated with lower future productivity. Results also show that investors seem to fail to utilize the information contained in excess restructuring charges.