Open AccessIn Defense Of Plant Closings
Author(s) -
Rajiv Kalra,
Sheila Diebler
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v8i2.6173
Subject(s) - closing (real estate) , valuation (finance) , shareholder , economics , event (particle physics) , business , event study , software deployment , value (mathematics) , finance , computer science , corporate governance , geography , context (archaeology) , archaeology , physics , quantum mechanics , machine learning , operating system
Globalization of markets and technological advancements result in, among other things, closing of uncompetitive plants. This paper defends plant closings. We argue that a plant is not necessarily an unfortunate event; rather, it is another productive assets re-deployment alternative available to managers. Possible causes and shareholder wealth consequences of plant closing are examined. A plant closing valuation model is developed. This is followed by an example which illustrates the method to accurately compute the plant closing value.