Document Type

Article

Publication Date

12-1-2006

Journal / Book Title

Managerial and Decision Economics

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.

DOI

10.1002/mde.1302

Published Citation

Lin, B., Lee, Z. H., & Peterson, R. (2006). An analytical approach for making management decisions concerning corporate restructuring. Managerial and Decision Economics, 27(8), 655-666.

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