Percorrer por autor "Tolosa Olazabal, Juan"
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- Tackling the metals and mining industry crisis : Anglo American’s successful restructuring planPublication . Tolosa Olazabal, Juan; Reis, RicardoThis paper studies the metals and mining industry during the last commodity super-cycle, which triggered by explosive growth of emerging economies helps understand the empire building behavior engaged in by leading mining companies and the financially distressed industry at the end of the cycle in early 2016. The study documents the costly asset acquisition plans and the excessive leverage levels pursued by various firms, hence finding additional evidence of managerial overconfidence and excessive corporate investment theories during boom cycles. With further aim of understanding successful company restructuring processes, we present the case of Anglo-American, a diversified metals and mining company that faced the wrath of plunging commodity prices on top of an enormous debt pile and major operational inefficiencies. The analysis of the company’s trajectory during the boom cycle and the radical restructuring plan implemented to enhance long-term prosperity serves as a proxy for future commodity super-cycles and helps flag certain actions taken by managers at times of favorable economic conditions.