An Analytical Approach for Making Management Decisions Concerning Corporate Restructuring
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.
MSU Digital Commons Citation
Lin, Beixin; Lee, Zu Hsu; and Peterson, Richard, "An Analytical Approach for Making Management Decisions Concerning Corporate Restructuring" (2006). Department of Accounting and Finance Faculty Scholarship and Creative Works. 24.