Turnaround Strategies in the Asian Crisis and Global Financial Crisis - The role of asset and cost retrenchment in South Korea

turnaround management;retrenchment;South Korea;Asian financial crisis;Global financial crisis;327

다리어기욤가브리엘국제대학원 국제학과 ;

University:서울대학교 국제대학원

关键词: turnaround management;    retrenchment;    South Korea;    Asian financial crisis;    Global financial crisis;    327;   

Others  :  http://s-space.snu.ac.kr/bitstream/10371/126328/1/000000056974.pdf

美国|英语

来源: Seoul National University Open Repository

【 摘 要 】

One of the most controversial issues in turnaround research is the role of cost and asset retrenchment. Several studies focusing on the role of retrenchment in crisis situations in Asia have yielded ambiguous and inconsistent findings. There is value, from a business strategy and economic policy perspective, to investigate the Korean case and either confirm or refute the merits of retrenchment for Korean corporations. Two major crises, the Asian financial crisis and the Global financial crisis, were investigated.The quantitative analyses performed in this thesis confirmed that retrenching companies yield lower levels of performance than their non-retrenching counterparts, during both crises. These results tend to confirm the findings of Barker and Mone (2004), according to whom retrenchment is the consequence of performance decline and not the component of a successful turnaround strategy. The findings of this thesis also show that only a minority of Korean firms resorted to cost or asset retrenchment, which contradicts the assumption made by Robbins and Pearce (1992) that the majority of firms engaged in a turnaround should retrench.