Open AccessValue of Shareholders in The Turnaround Process: A Signaling Theory Perspective
Author(s) -
Clay Dibrell,
John Francis,
Robert Van Ness
Publication year - 1970
Publication title -
journal of business strategies
Language(s) - English
Resource type - Journals
eISSN - 2162-6901
pISSN - 0887-2058
DOI - 10.54155/jbs.15.1.58-72
Subject(s) - turnaround time , business , shareholder , value (mathematics) , perspective (graphical) , process (computing) , industrial organization , operations management , economics , corporate governance , finance , computer science , operating system , machine learning , artificial intelligence
This paper provides an exploratory examination of market reaction to announcements of turnaround strategies from firms involved in the turnaround process. The findings of this paper suggest the market reacts positively to announced turnaround strategies. Interestingly, nonturnaround firms posted higher positive abnormal returns than firms that eventually were able to successfully complete a turnaround.