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AN INVESTIGATION OF INDUSTRY AND FIRM STRUCTURAL CHARACTERISTICS IN CORPORATE TURNAROUNDS *
Author(s) -
Paint Laurie W.
Publication year - 1991
Publication title -
journal of management studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.398
H-Index - 184
eISSN - 1467-6486
pISSN - 0022-2380
DOI - 10.1111/j.1467-6486.1991.tb00983.x
Subject(s) - diversification (marketing strategy) , univariate , business , sample (material) , multivariate statistics , industrial organization , underpinning , turnaround time , econometrics , economics , marketing , operations management , statistics , engineering , chemistry , civil engineering , mathematics , chromatography
This article uses the structure/conduct/performance framework as an underpinning to investigate the attributes of turnaround firms. Turnaround is defined as a substantial improvement of the firms's return on assets relative to the average return of its industry. Industry and firm structural characteristics including concentration, industry growth, R&D, advertising, market share, size, diversification, capital intensity and margins are identified. The results of a series of univariate and multivariate tests run on a sample of turnaround and non‐turnaround firms indicate that size, R&D, and an interaction between operating margin and advertising can be helpful in explaining some turnaround situations.