An analytical approach for making management decisions concerning corporate restructuring

Research output: Contribution to journalArticleResearchpeer-review

5 Citations (Scopus)

Abstract

Internal corporate restructuring activities, such as downsizing, sale or termination of a business line, facility closure, consolidation, or relocation, often occur as part of managerial strategies intended to improve efficiency, control costs, and adapt to an ever-changing business environment. Such actions frequently result in fundamental changes in a business's organization, its strategies, its systems, and its operations. They can unsettle a business and often significantly affect current and future earnings and cash flows. In this paper we propose a novel decision-making model through the use of the dynamic programming technique to illustrate how management can determine the optimal timing and appropriate restructuring actions that maximize the benefits of a restructuring program.

Original languageEnglish
Pages (from-to)655-666
Number of pages12
JournalManagerial and Decision Economics
Volume27
Issue number8
DOIs
StatePublished - 1 Dec 2006

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Industry
Relocation
Dynamic programming
Consolidation
Sales
Decision making
Management decision-making
Corporate restructuring
Costs
Downsizing
Decision-making model
Business environment
Cash flow
Termination
Optimal timing
Cost control
Business organization
Closure

Cite this

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An analytical approach for making management decisions concerning corporate restructuring. / Lin, Beixin; Lee, Zu Hsu; Peterson, Richard.

In: Managerial and Decision Economics, Vol. 27, No. 8, 01.12.2006, p. 655-666.

Research output: Contribution to journalArticleResearchpeer-review

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