Enterprise Restructuring Research Articles

The imprint effect of initial institutional environments and bank financing in family businesses

The initial imprint embedded in family business origin provides us with favorable support for identifying how past institutional environments and then current governance characteristics influence financing. This study investigates the influence of family business origin on loan borrowing, and finds that restructured family firms (RFFs), which are formed through the restructuring of collective-ownership enterprises, are likely to obtain more loans compared to entrepreneurial counterparts (EFFs). The effect varies with local marketization, family control rights, and intergenerational succession. Our findings suggest that restructured family firms have a sounder modern enterprise system, less information asymmetry, and consequently pose less credit risk, which allows them to access loans more easily. In addition, institutional differences stemming from the origin of the firms affect the composition and cost of bank financing. RFFs outperform EFFs in terms of the size of non-local bank loans and the cost of loans. Overall, this study shows that the institutional environment of family firms at the founding stage has a long-term impact on future financing.

Using the Altman’s Z-score formula to assess the bankruptcy risk of state - owned construction enterprises in Vietnam

In the current economic situation affected by epidemics, wars, recessions, etc., construction enterprises in Vietnam in general and state – owned construction enterprises in particular face many difficulties to maintain performance efficiency. On the other hand, the policies of restructuring and equitization of state-owned enterprises also have a strong impact on the financial management of construction enterprises in Vietnam. This study uses data from financial statements of 22 state-owned construction enterprises in Hanoi from 2017 to 2021 to calculate the Altman Z-score formula. The Altman Z-score is a linear combination of four or five common business ratios, weighted by coefficients. Z-scores are used to predict corporate defaults and an easy-to-calculate control measure for the financial distress status of enterprises with high reliability. The research results show that a few enterprises are in the "safe" zone and "grey" one while most are in "distress" zone. The cause of inefficient business performance is that the revenue and profit ratio to total assets of state-owned construction enterprises to decrease sharply, the ratio of working capital to total assets is low. Moreover, the ratio of equity to total debt is the most important reason for the low Z-score, which means predicting a high risk of bankruptcy in state-owned construction enterprises. The evidence base from the research results is used to propose 5 solutions to reduce the risk of bankruptcy and improve the efficiency of financial management of enterprises.

Эволюция антикризисного управления организацией в современных условиях

The article deals with the dynamics of the theory of anti-crisis management of the organization (ACM) in modern conditions. The basic classifications of types of anti-crisis management are considered, their comparative analysis is carried out, conclusions are made that in modern conditions anti-crisis management of an organization is inseparably connected with its sustainable development, therefore, it comes to a new level, becoming a part of strategic management and especially actual today change management. The levels of anti-crisis management of the organization are marked out. The article pays special attention to the ambiguity of interpretation of the concept of «crisis of the organization». It is necessary for formation of effective anticrisis strategy of the organization to understand the essence of its basic concept – crisis, the research of its genesis and modern interpretations. The study of economic literature has shown that the understanding of crisis is ambiguous. There are two main positions have been formed in studies on the problems of crisis management to understand the nature of the crisis. One group of authors (E.M. Korotkov, T.N. Rogova, V.K. Krutikov, K.V. Baldin, S.E. Kovan, etc.) focuses on the negative manifestations of the crisis, its destructive function. Other researchers (A.S. Bolshakov, V.Y. Zakharov, A.D. Chernyakhovsky, N.D. Koryagin, A.S. Lifshits, V.M. Pishchulov, etc.) consider crises as a contradictory phenomenon and analyse their positive sides and creative role. The dual nature of crises predetermines the multi-purpose orientation of ACS and multifunctionality of its content. This is the peculiarity of the anti-crisis management system. The unified ACM system includes tools for crisis prevention, diagnosis, overcoming the crisis, enterprise restructuring strategy, methods of crisis prevention, methods of forecasting and planning, strategic management, as well as non-standard methods of personnel management. The author notes that crisis management tools should be integral components of sustainable enterprise development strategies.

Analysis of the Motivations and Economic Effect of Centrallocal State-owned Enterprise Restructuring in China

Analysis of the Motivations and Economic Effect of Centrallocal State-owned Enterprise Restructuring in China

Організаційно-економічні засади диверсифікації структури капіталу підприємств аграрного виробництва

Diversification and changes in the capital structure play an essential role in the agricultural industry’s reform, affecting the country’s productivity, competitiveness, and food security. Optimizing the equity and debt capital ratio helps increase enterprises’ investment attractiveness and financial stability. In this regard, the research aims to define and justify the organizational and economic principles of diversification of the capital structure of agricultural enterprises. The main principles of the transformational processes of the agro-industrial industry, caused by the diversification of the structure of capital forms, have been formed. The advantages of directing the diversification of the capital of enterprises in the direction of the growth of part of the equity capital are substantiated, which include increasing the financial stability of the enterprises of the industry, improving the productivity of production activities, reducing the risks associated with the credit load, increasing the investment attractiveness of enterprises, increasing competitiveness, improving long-term development prospects agricultural industry. The main directions of activating the growth of the equity capital of agro-industrial enterprises are proposed, which include expansion of equity financing, use of financial instruments, implementation of enterprise restructuring, optimization of costs in the direction of reduction, improvement of the productivity of the enterprise’s production activities, introduction of leasing and crowdfunding into financial activities. It is substantiated that the strategy for the development of enterprises in the agro-industrial sector of Ukraine during the crisis should focus on technological restructuring, long-term investments, and capitalization. Improving infrastructure that supports economic growth, job creation, and food security while considering environmental and health concerns plays an important role. Keywords: diversification, equity capital, loan capital, optimization, competitiveness, agricultural production enterprises.

Branch differentiation of financial mechanisms of enterprise restructuring

In the paper, the financial mechanism of enterprise restructuring is interpreted as a complex process, the object of comprehensive analysis, clear planning, effective implementation, the implementation of which allows enterprises to restore financial stability, increase competitiveness and ensure sustainable development in the long term. It has been proven that the general principles of the functioning of the financial restructuring mechanism are: transparent business conduct, openness in communication, mutual benefit, reaching consensus, analysis of all aspects of activity, integration of various measures, realistic goals, financial flexibility, constant monitoring, reporting to stakeholders, innovativeness, proactivity , flexibility and operational adaptation, alternative, optimality, etc. Adherence to the specified principles ensures the successful implementation of financial restructuring, increases trust in the enterprise and contributes to achieving its financial stability. It is shown that the sectoral differentiation of financial mechanisms of enterprise restructuring allows taking into account the specifics of each industry, ensuring effective management of financial risks and optimization of resources. Successful restructuring requires an individual approach that takes into account the unique needs and operating conditions of each enterprise. Based on the results of summarizing the experience of the functioning of financial mechanisms in various branches of the national economy, it was established that they differ in various aspects of restructuring, which can be of the following nature: adaptive, structural, structural-adaptive, integrative, security-oriented, reengineering of business processes. General financial instruments that can be used in all branches of the national economy are substantiated - state financing programs through the use of state grants, subsidies and credit programs to support restructuring measures, as well as public-private partnerships based on the involvement of private investors for joint financing of infrastructure projects.

Transformations of Russian industrial real estate in the context of unstable economy: Literature mapping and review

This study is focused on Russian industrial real estate and mechanisms of its transformation in crisis periods as a sphere of scientific knowledge. The investigated crisis periods are of interest from the perspective of their different nature, which remains a relevant research problem at the interface of economics and politics. The source materials were all types of research literature published from 1940 up to the present, along with state standards in this field. The materials for analysis were collected from the book funds of the Russian State Library and journals of the leading Moscow universities. The collected literature was classified based on three historical periods. These included (1) the war and post-war period of the 40s and up to the mid-70s, when technical literature was published; (2) 90s and 2000s, which passed under the sign of perestroika and general restructuring of industrial enterprises; and (3) the period since 2014 up to the present, characterized by a series of geopolitical events. The conclusion is made that the evolution of scientific knowledge in the field of industrial real estate depends on the nature of the ongoing crisis.

Case Study of Enterprise Value Assessment

Along with the gradual advancement of the deepening reform of our country's socialist market economy and the further optimization of resource allocation, the restructuring, investment, acquisition and merger of enterprises are becoming increasingly frequent economic activities. The evaluation of the value of the target enterprise is one of the important links. This paper takes the small household appliance industry as the starting point, takes the small B Electric Appliance Co., Ltd. as an example, and uses the discounted free cash flow model in the income method to estimate its market value. It can reflect that this method is conducive to providing detailed and solid basis for value assessment relatively comprehensively from the aspects of enterprise profitability, profit quality, future profit sustainability, expected rate of return of the industry in which it is located, and time cost of funds, etc., and is widely used in the capital financial market and market information disclosure requirements.

Regulatory Arrangement in Supporting The Restructuring of State-Owned Plantation Enterprises

The formation of a holdingholding to restructure the state-owned plantation industry cannot be separated from the government’s ability to control the country’s economic engine. Government Regulations Number 72 of 2014 and Number 72 of 2016 which were passed as legalizing the formation of BUMN holdingholding s have sparked controversy and public debate. The fundamental issue of this procedure is the Parent Company’s legal obligation to manage the Parent Company. In the relationship between parent companies and subsidiaries, the concept of limited liability presents its own problems. In addition, there is uncertainty regarding legal obligations to third parties. The research methodology is normative law which is supported and obtained from literature data. The findings of this study indicate that the use of the BUMN Law and Limited Liability Company Law as guidelines for managing Plantation BUMNs does not provide the business confidence that Plantation BUMNs need to grow and stay healthy. Considering that the business world continues to develop and the high need for group company management among business actors who carry out business development and expansion, adjustments to these two regulations are very important. The modern business paradigm has resulted in the consolidation of centralized operations in a way that drives growth. As a result, the formation of a holding companyholding company by the government is inappropriate if it is not preceded by changes to the Limited Liability Company Law which provides business certainty for established Plantation BUMNs.

Development of a fixed asset management system in the context of restructuring of industrial enterprises' production activities

Subject. This article discusses the issues of formation of a fixed assets management system for an industrial enterprise in the context of restructuring its production activities. Objectives. The article aims to develop a system of management of fixed assets of an industrial enterprise, formed on the principle of grouping of operated means of labor, taking into account the functionality of their use. Results. The article proposes an author-developed system for managing fixed assets in operation in the context of restructuring production activities at an industrial enterprise, as well as a programme for restructuring production activities. Conclusions. In the context of the transformation of economic relations, one of the important ways to carry out the effective operation of an industrial enterprise is the restructuring of its activities.

Remaking “Small Business” in Turkey: Critical Assessment of Small Business Politics Under the AKP Rule

ABSTRACT The capital accumulation in Turkey was notably bolstered by the substantial involvement of small-scale trade and manufacturing activities yet significant changes in the realm of small business politics have occurred since the 1980s, culminating in the restructuring of small enterprises as a viable business model through a series of socio-political and economic shifts. As for the 2000s, this period has witnessed a heightened emphasis on entrepreneurial rhetoric where sectoral inequalities have affected the model of small businesses through a range of institutional-legal policies and financial adjustments compatible with the consumption-led growth model during the AKP era. While the policies aligned with the demands of global trade have indeed created a favorable environment for capital accumulation, but introduced a range of new competition dynamics and complexities among the sectors and have forged new alliances within the small businesses, alongside giving rise to emerging conflicts.

Financial Impact Analysis of the Restructuring and Listing of State-Owned Enterprises

In the rapidly evolving economic landscape, State-Owned Enterprises (SOEs) stand as prominent pillars, with their restructuring and listing being pivotal to both their development and the broader economic progression. This study delves into the financial impacts of restructuring and listing on three prominent Chinese SOEs: CNPC Capital, China Energy Construction, and China Communications Construction. The findings reveal significant growth in assets and liabilities, with a noticeable uptrend in net profits for all entities post-restructuring. The year-end cash balances exhibited a consistent upward trajectory, suggesting enhanced liquidity and operational efficiency. Additionally, the Earnings Per Share (EPS) analysis illustrated distinct trajectories for each SOE, highlighting the nuanced financial outcomes of their strategic decisions. These findings underscore the potential of SOEs to harness capital market access, strategic realignment, and operational optimization to drive financial and operational efficiency, emphasizing the importance of such endeavors in aligning SOEs with global market standards and bolstering economic competitiveness. This comprehensive analysis underscores the multifaceted financial benefits of restructuring and listing for SOEs, shedding light on their role in fostering economic development and market dynamism.

РОЗНИЧНАЯ ТОРГОВЛЯ В РОССИИ: ТРЕНДЫ И ВЫЗОВЫ

This study uses an integrated approach, which consists in researching megatrends and identifying challenges for retailers and the state contained in trends. The analysis of megatrends allowed us to conclude that there are three groups of factors for the development of the world in general and trade in particular – political, technological, and social (sustainable development). The author’s interpretation of megatrends is shown: changing globalization, aging of the population, climate change and pollution of the planet, robotization and employment of the population, growth of the middle class, restructuring of enterprises and industries. The paper conducted a study of megatrends affecting the development of trade in the medium term, followed by the identification of challenges for two levels of subjects – the state and retailers. Awareness of these challenges will be useful for retailers when changing development strategies, as well as for the Ministry of Industry and Trade when making adjustments to the existing draft Trade Development Strategy.

Використання методів аналізу та контролю при проведенні дью дилідженс

Intensification of market processes in the part of attracting foreign investment, conducting mergers and acquisitions (M&A), restructuring of enterprises and expansion of their activities determines the importance of providing potential investors with high-quality information support for making strategic managerial decisions. A contemporary instrument for a comprehensive due diligence of the company’s activities is the audit service of «due diligence». The absent standardization and the lack of legal regulation of due diligence necessitated the improvement of the methodological instruments of this service. Based on this, it is expedient to use modern methods of analysis and control, which will allow not only to assess risks, but also to take preventive measures to minimize them. The aim of the article is to substantiate the content of «due diligence» and improve the methodological instruments by providing recommendations on the use of methods of analysis and control. The information basis of the present research is the normative legal acts of Ukraine on audit and accounting, scientific publications of scholars. The article applies general scientific and special research methods: induction, deduction, analysis, synthesis, horizontal analysis, comparison, and others. Due diligence – as a process of comprehensive preinvestment study – is a crucial element for successful risk management and achieving positive results from concluding an agreement. The dynamics of M&A transactions over the past decades in the world, as well as the structure of the largest contracts in Ukraine over the past year, are researched. Proposals for improving the methodological support for conducting the main types of due diligence based on the use of methods of analysis and control have been developed.

Організація логістичних процесів у проєктній діяльності підприємств

Today, project activities permeate all areas of the functioning of a traditional industrial enterprise, playing a key role in marketing, research and development, production and sales. In the conditions of a market economy, complex enterprise restructuring projects, which include subprojects for updating the product portfolio, organizational and production restructuring, implementation of financial management and controlling, are of particular importance. The orientation of projects towards achieving certain goals creates a significant internal potential for effective management. The company’s project activities include planning, analysis, implementation, control and evaluation of projects. It helps to improve work efficiency, enhance competitiveness and increase the profitability of the business. An important element is the use of logistic solutions that provide comprehensive services for investment projects. Logistic processes include management of material flows, movement of resources, control, physical distribution of resources, warehousing and optimization of transport and warehouse complexes. The efficiency of logistic processes is determined by several aspects: understanding needs, identifying critical paths and risks, coordinating the supply chain, selecting suppliers, concluding contracts, organizing transportation, routing, tracking, packaging, warehousing, and inventory. In addition, cost control and flexibility of logistic processes are essential for the successful implementation of projects. Project activities require proper coordination of all processes – from planning to monitoring the implementation of tasks. Coordination between different parts of the enterprise, risk management, and sourcing are key aspects of successful project management. Careful organization of project activities allows enterprises to increase work efficiency, competitiveness and achieve their goals.

Reforming State-Owned Enterprises (SOES) to Facilitate the Economic Recovery of Sri Lanka

The economic downturn and escalating debt levels prompted Sri Lanka to seek assistance from the International Monetary Fund (IMF), resulting in the formulation of the 17th IMF program. This program, aimed at fiscal consolidation and restructuring, designates SOEs as a pivotal element in the nation's economic recovery strategy. This policy brief addresses the imperative need for reforming State-Owned Enterprises (SOEs) in Sri Lanka. A historical overview reveals the evolution of Sri Lanka's SOEs, from their establishment during World War II to a surge in numbers in the 1980s. Despite their vital role in the economy, SOEs have faced operational inefficiencies, financial struggles, and governance issues, leading to a privatization policy in 1988. The document explores international experiences in SOE reform, drawing insights from successful models in Singapore, China, and India. Current policy measures in Sri Lanka encompass various reform strategies, such as corporatization, restructuring, and commercialization, focusing on enhancing financial transparency and accountability. The establishment of the State-Owned Enterprise Restructuring Unit (SRU) reflects a commitment to effective implementation, with international support from entities like the International Finance Corporation (IFC). In conclusion, the path to economic recovery in Sri Lanka hinges on the successful transformation of SOEs, ensuring financial viability, transparency, and sustainable growth.

Impact of Enterprise Digital Transformation on Enterprise Investment Structure

As the flow of financial capital continues to expand, China's domestic non-financial enterprises have shifted virtual to real to a certain extent and have deepened the degree of digital transformation. In October 2022, China put forward a strategic plan to accelerate the construction of "Digital China", and promote enterprise restructuring through improving digital transformation. This paper explores the impact of enterprise digital transformation on the investment structure of Chinese A-share-listed non-financial enterprises in Shanghai and Shenzhen, taking the A-share-listed non-financial enterprises in Shanghai and Shenzhen from 2011 to 2021 as the research sample. The empirical analysis finds that enterprise digital transformation improves the investment structure of enterprises and promotes enterprises to "shift from virtual to real". Based on this analysis, a heterogeneity analysis is conducted, and it is found that under different internal environments, such as the nature of different shareholdings, the influence of enterprise digital transformation on enterprise investment structure is different.

Data Driven Mixed Industry Restructuring of State-Owned Enterprises in the Digital Marketing Strategy Era

Data Driven Mixed Industry Restructuring of State-Owned Enterprises in the Digital Marketing Strategy Era

AVIC Electronics Shares Exchange to Merge & Acquisition AVIC Electromechanical

Under the impact of China's and world economic conditions and development under the novel coronavirus pneumonia epidemic as the background, it is necessary to further extend its impact on the economic situation and development of the aviation industry, to introduce this articles research motif, that is, the development of aviation manufacturing industry after enterprise restructuring under the background of the novel coronavirus epidemic. This paper takes the share swap and merger of AVIC Electromechanical as a case study to conduct financial data analysis, market data analysis and performance analysis respectively, so as to compare the situation of AVIC Electronics before and after the restructuring. Subsequently, this paper will analyze the advantages and disadvantages brought by the restructuring to the enterprise. Then, one needs to put forward the suggestions for the future development of AVIC Electronics in the field of military aviation, civil aviation, and industrial manufacturing, and finally give a conclusion, pointing out the significance of this article and the areas that still need to be improved.

Challenges and Prescriptions to Corporate Governance Issues Facing State-Owned Enterprises (SOEs): A Zimbabwean Perspective

The main objective of the study was to determine the corporate governance challenges facing State-Owned Enterprises in Zimbabwe. In so doing the study sought to proffer solutions and prescriptions to the challenges. In this view, the study adopted a quantitative research approach in which the positivist philosophy was applied. A cross-sectional survey design was used in which data was gathered using a structured questionnaire. The target population consisted of top and middle management, board members, board chairpersons, and CEOs of SOEs found in Zimbabwe. Using the sampling procedure developed by Krejcie and Morgan (1970), a sample size of 351 individuals was determined. The research employed stratified random sampling for sampling respondents. SPSS version 23 was used to analyze quantitative data. The research established that Corporate governance challenges faced by SOEs in Zimbabwe include the bureaucratic nature of SOEs which causes inflexibility, political history of SOEs, poorly composed boards, inefficient and lack of transparency in the appointment of boards, limited board independence, and unstable economic conditions. The research recommends that authorities in the Office of the President and Cabinet from the Corporate Governance Unit or State Enterprises Restructuring Agency should organize more corporate governance training for Boards and other custodians of corporate governance in State Owned Enterprises.