The Effect of Restructuring on Financial Recovery with Emphasis on Corporate life cycle at TSE

Document Type : Original Article

Authors

1 Assistant Prof, Department of Managemet, Shahrood University of Technology, Semnan, Iran.

2 Msc of Financial Management, University of Isfahan, Isfahan, Iran.

Abstract

Recovery of the financial structure in order to avoid financial distress in the firm's life cycle is of particular importance, which can be influenced by structuring strategies. The main objective of this research is to assess the impact of life cycle and restructuring on financial recovery in a sample of 148 firms listed in Tehran stock Exchange during 2008-2017. Therefore, by identifying managerial, operational, and financial restructuring strategies during the life-cycle, its effect on the financial recovery in the form of logistic regression models has been investigated. The research findings indicate the effect of managerial restructuring strategy in conditions of growth and decline on of financial recovery, as well as operational strategies, especially in the phase of decline, can lead to restoration of financial recovery. Financial strategies in the area of dividend have a reversal effect on the financial recovery, but changes in the capital structure based on capital and debt can lead to financial recovery. Finally, the results show that multiple restructuring strategies have positive effects on financial recovery.

Keywords

References

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