Next Article in Journal
Spatio-Temporal Changes and Dependencies of Land Prices: A Case Study of the City of Olomouc
Previous Article in Journal
A Strategy-Based Model for Low Carbon Cities
Article Menu
Issue 12 (December) cover image

Export Article

Open AccessArticle

Pursuing Firm Economic Sustainability through Debt Restructuring Agreements in Italy: An Empirical Analysis

Department of Management, Economics and Quantitative Methods, University of Bergamo, 24127 Bergamo, Italy
*
Author to whom correspondence should be addressed.
Sustainability 2018, 10(12), 4830; https://doi.org/10.3390/su10124830
Received: 26 October 2018 / Revised: 5 December 2018 / Accepted: 14 December 2018 / Published: 18 December 2018
  |  
PDF [208 KB, uploaded 18 December 2018]
  |  

Abstract

Corporate restructuring has become a central topic for both academics and practitioners, particularly following the global financial crisis. In particular, there is increasing interest in understanding the effectiveness of turnaround strategies, which are defined as attempts to restore the performance of firms after periods of downfall. However, despite the relevance of this issue, there is a shortage of empirical evidence regarding the effectiveness of turnaround strategies related specifically to financial interventions. Through the support of an empirical analysis among Italian firms, this paper seeks to fill this significant gap in the available literature. In particular, we conducted an in-depth analysis of 262 debt restructuring agreement (DRA) plans that occurred between 2005 and 2013 in 16 bankruptcy courts. Our study confirms the positive effect of changes in the top management team. This measure can be both a symbolic signal of genuine willingness to modify the strategy of the firm, and a real manifestation of the necessity to have new skills to complete the turnaround. In addition, the adoption of operational and strategic/asset measures increase the likelihood of turnaround success. View Full-Text
Keywords: turnaround strategy; debt restructuring agreement; global economic crisis turnaround strategy; debt restructuring agreement; global economic crisis
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
SciFeed

Share & Cite This Article

MDPI and ACS Style

Danovi, A.; Magno, F.; Dossena, G. Pursuing Firm Economic Sustainability through Debt Restructuring Agreements in Italy: An Empirical Analysis. Sustainability 2018, 10, 4830.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Sustainability EISSN 2071-1050 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top