Browsing by Author "Brichetto, Matteo"
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- Effectiveness of turnaround and restructuring initiatives : a sector-specific analysis in the US marketPublication . Brichetto, Matteo; Reis, RicardoThis dissertation delves into the dynamics of the restructuring and turnaround initiatives made by the US firms from January 2000 until December 2022. The objective of this thesis is to understand if the strategies adopted by the 1.848 distressed companies observed have been effective in the recovery process and which are the differences between the different sectors. Utilizing, at first, a logit regression model, the dissertation aims to understand if and how the strategies considered affected the probability of recovery of the firms. Once the relationship has been established, a linear regression model, that look at the change in the Z-score, has been used to capture the magnitude of the effect caused by the restructuring processes. The findings highlight that, in most of the cases, the restructuring strategies adopted tend to have more a negative rather than a positive effect on the probability of recovering. The magnitude of the strategies, instead, tend to vary among the different industries with some sectors that show quite an important detrimental effect of some restructuring initiatives. To better comprehend in overall terms how the different turnaround processes influenced the US market, both regressions have been run with all the sample, obtaining results in line with what obtained in the sector-specific analyses, with some minor differences. This thesis contributes to the study of the turnaround mechanism, with the goal of helping future research to achieve results that might be the starting point of the managerial decisions that are crucial in periods of distress.