Showing papers on "Restructuring published in 2021"

Mergers, Acquisitions, and Other Restructuring Activities: An Integrated Approach to Process, Tools, Cases, and Solutions

Abstract: Mergers, Acquisitions, and Other Restructuring Activities: An Integrated Approach to Process, Tools, Cases, and Solutions, Ninth Edition, is the most current, comprehensive and cutting-edge text on M&A and corporate restructuring available. It includes many of the most up-to-date and notable deals and precedent setting judicial decisions, as well as new regulations, trends and tactics employed in M&As. The implications of recent developments such as negative interest rates on valuation and the backlash against globalization for cross-border M&As are discussed. More than 90% of the case studies are new for this edition, involving deals either announced or completed during the last several years. It is comprehensive in that nearly all aspects of M&As and corporate restructuring are explored from business plan development to target selection and valuation to negotiation and post-merger integration. It is cutting edge in that conclusions and insights are anchored by the most recent academic research, with references to more than 160 empirical studies published in leading peer-reviewed journals just since the release of the last edition in 2015. Teaches about the financial, legal, accounting and strategic elements of mergers and acquisitions by concentrating on the ways their agents interact Emphasizes current events and trends through new and updated casesHighlights international mergers and acquisitions activities

The potential of power-to-heat demand response to improve the flexibility of the energy system: An empirical review

Abstract: This paper provides a systematic review of 34 large-scale projects of power-to-heat demand response. The projects have been classified in terms of location, size, technical implementation and objective. The chronological ordering of the reviewed projects enables key takeaways to be drawn considering other developments in the energy sector, such as its restructuring and the emergence of competing flexibility options. The presented approach provides renewed insight to the debate on power-to-heat demand response diffusion. Historically, power-to-heat demand response has been used because of its wide availability on the demand side. Within utility programs, it has mostly been used to deal with infrastructure capacity limitations. This is still a major driver for power-to-heat demand response today. To address the challenges that come with the integration of renewable energy sources, more recent research projects have focused on exploring its capability to provide real-time balancing and frequency response at a smaller scale. The literature review suggests that the period of energy sector restructuring introduced uncertainty to energy companies regarding power-to-heat demand response and thus influenced its use. This period is now superseded by developments focused on electricity markets that are open to the demand side. Considering the flexibility requirement of the future energy system, new opportunities arise for power-to-heat demand response. Based on a critical analysis of the technical and regulatory changes, this paper makes the claim that the economic and policy frameworks have had a much more significant effect on the varying diffusion of power-to-heat demand response than the effect of the control and information technologies. In that sense, market rules should be carefully tailored so as to unlock the flexibility not only of power-to-heat demand response, but also of other flexibility resources.

GVC transformation and a new investment landscape in the 2020s: Driving forces, directions, and a forward-looking research and policy agenda

Abstract: Global value chains (GVCs) will undergo substantive transformation in the decade ahead, reshaping the global trade and investment landscape The change will be driven by five major forces: economic governance realignment, the new industrial revolution, the sustainability endeavor, corporate accountability, and resilience-oriented restructuring All of this will present challenges and opportunities for firms and states alike, leading to an investment-development paradigm shift This article discusses the five driving forces for the GVC transformation, projects ten broad trends in the evolution of the global trade and investment landscape, and also presents a forward-looking agenda for multi-dimensional research and policy in the decade ahead It aims at providing a framework for future research that encourages cross-disciplinary collaboration as well as a structured dialogue between academia and policymakers

Family Business Restructuring:A Review and Research Agenda

Abstract: Although business restructuring occurs frequently and it is important for the prosperity of family firms across generations, research on family firms has largely evolved separately from research on business restructuring. This is a missed opportunity, since the two domains are complementary, and understanding the context, process, content, and outcome dimensions is relevant to both research streams. We address this by examining the intersection between research on business restructuring and family firms to improve our knowledge of each area and inform future research. To achieve this goal, we review and organize research across different dimensions to create an integrative framework. Building on current research, we focus on 88 studies at the intersection of family firm and business restructuring research to develop a model that identifies research needs and suggests directions for future research.

How China Lends: A Rare Look into 100 Debt Contracts with Foreign Governments

Abstract: China is the world’s largest official creditor, but basic facts are lacking about the terms and conditions of its lending. Very few contracts between Chinese lenders and their government borrowers have ever been published or studied. This paper is the first systematic analysis of the legal terms of China’s foreign lending. The authors collect and analyze 100 contracts between Chinese state-owned entities and government borrowers in 24 developing countries in Africa, Asia, Eastern Europe, Latin America, and Oceania, and compare them with those of other bilateral, multilateral, and commercial creditors. Three main insights emerge. First, the Chinese contracts contain unusual confidentiality clauses that bar borrowers from revealing the terms or even the existence of the debt. Second, Chinese lenders seek advantage over other creditors, using collateral arrangements such as lender-controlled revenue accounts and promises to keep the debt out of collective restructuring (“no Paris Club” clauses). Third, cancellation, acceleration, and stabilization clauses in Chinese contracts potentially allow the lenders to influence debtors’ domestic and foreign policies. Even if these terms were unenforceable in court, the mix of confidentiality, seniority, and policy influence could limit the sovereign debtor’s crisis management options and complicate debt renegotiation. Overall, the contracts use creative design to manage credit risks and overcome enforcement hurdles, presenting China as a muscular and commercially savvy lender to the developing world.

Profit-based unit commitment problem: A review of models, methods, challenges, and future directions

Abstract: The unit commitment problem is one of the most significant and basic issues in the monitor, control, and operation of modern power systems, which has always been a subject of great concern to researchers and operators as the most extensive human-made system. Before restructuring, one of the main objectives of unit commitment problem was the minimization of the total operation cost of power plants subject to various constraints, including unit and network ones. As the privatization and restructuring process became more serious, the primary purpose of the unit commitment problem has been changed to maximizing the total profit, which led to the emergence of a new concept known as profit-based unit commitment problem. Accordingly, the maximization of the profit for generation companies, all over the studied period, is a top-priority direction. This paper presents a comprehensive overview of the profit-based unit commitment problem in restructured power systems by investigating the most important studies on this topic and providing a complete classification. It also outlines the challenges facing researchers in this field, offers new insights, and suggests future directions.

Learning from the Past – Downsizing Lessons for Managers

Abstract: Downsizing as a change management strategy has been adopted by companies and governmental agencies since the 1970s. While workforce reductions were utilized mainly in response to organizational and economic crises prior to the mid-1980s, downsizing developed into a proactive restructuring strategy of choice for a multitude of organizations in the mid- to late-1980s. Since then, downsizing has transformed the corporate landscape and changed the lives of hundreds of millions of individuals around the world. While downsizing has attracted a lot of attention in academic circles, the business community, and the popular media, many misconceptions and mysteries surrounding the phenomenon have remained. This research study presents an overview of the reported financial, organizational, and human consequences following the conduct of downsizing. More importantly, the paper draws out implications for practicing managers and showcases four downsizing lessons that need to be considered by executives contemplating the adoption of downsizing.

Urban robotic experimentation: San Francisco, Tokyo and Dubai:

Abstract: Advances in robotics, artificial intelligence and automation have the potential to transform cities and urban social life. However, robotic restructuring of the city is complicated and contested. T...

Managing the COVID-19 pandemic crisis and changing welfare regimes

Abstract: This article aims at setting out a broader context for the debates and discussions on welfare transformations driven by rapid global challenges and restructuring. Confronted with challenges resulti...

COVID-19 and the uncertain future of HRM: Furlough, job retention and reform

Abstract: The article argues that job retention should be a central aim and practice of human resource management (HRM). Set against the global COVID-19 crisis, theoretical insights are drawn from strategic HRM planning and the economics of ?labour hoarding? to consider the potential benefits of workforce furloughing. Furlough has been supported in the UK by the Coronavirus Job Retention Scheme, which represents a novel, but temporary, state-led shift from the UK's market-orientated restructuring regime. We argue that the withdrawal of state-financed furlough may mean a quick return in UK firms to the management of redundancy. Yet, if the crisis is to generate any benefit it must create the conditions for a more collaborative HRM that delivers for workers as well as business, with job retention as a core priority. While change in this direction will mean confronting deep-rooted challenges?such as job security, good work and worker voice?such change remains vital in creating better and healthier workplaces.

Responding to imposed job redesign : the evolving dynamics of work and identity in restructuring professional identity

Abstract: How do professionals respond when they are required to conduct work that does not match with their identity? We investigated this situation in an English public services organization where a major ...

Restructuring Sovereign Bonds: Holdouts, Haircuts and the Effectiveness of CACs

Abstract: Sovereign debt crises are difficult to solve. This paper studies the “holdout problem,” meaning the risk that creditors refuse to participate in a debt restructuring. We document a large variation in holdout rates, based on a comprehensive new dataset of 23 bond restructurings with external creditors since 1994. We then study the determinants of holdouts and find that the size of creditor losses (haircuts) is among the best predictors at the bond level. In a restructuring, bonds with higher haircuts see higher holdout rates, and the same is true for small bonds and those issued under foreign law. Collective action clauses (CACs) are effective in reducing holdout risks. However, classic CACs, with bond-by-bond voting, are not sufficient to assure high participation rates. Only the strongest form of CACs, with single-limb aggregate voting, minimizes the holdout problem according to our simulations. The results help to inform theory as well as current policy initiatives on reforming sovereign bond markets.

Towards sustainability path in Argentina: the role of finance, energy mix, and industrial value-added in low or high carbon emission-application of DARDL simulation.

Abstract: The interconnection between environmental protection and sustainable development is at the heart of discussion among all the intergovernmental agencies around the globe. Such discussion is considered highly important considering the role of finance, an abundance of fossil fuel and industrial value-added on economic activities and environmental issues. Meanwhile, few empirical studies in this line of discussions have documented policy options for projecting the path towards sustainable development in Argentina from 1971 to 2018. To contribute to the extant literature in filling this gap, this study examines whether finance can escalate a long-lasting economic shift that will change the path of carbon emission in Argentina using the novel econometric technique, dynamic Autoregressive Distributed Lag simulations. The modelling protocol incorporates the impact of the following economic agents such as population, economic growth, trade openness, and government consumption expenditure. Our result suggests that all the variables are cointegrated under the ARDL-bounds testing framework. The long and short-term estimates from the dynamic ARDL simulation show that finance and industrial value added interestingly offer policy options for CO2 mitigation in Argentina. Fossil fuel, population, economic growth, and government consumption expenditure have increasing an impact on CO2 emissions, exacerbating sustainability challenges in Argentina. In sum, improved finance and industrial restructuring are needed economic acumen that can accelerate a quick transition to a low-carbon development in Argentina, while fossil fuel, population, economic growth, and government consumption expenditure generate environmental challenges. Policy options in consideration of investors' safety in carbonated companies in Argentina, these companies owe shareholders an obligation to invest in a resilient carbon capture and storage technology in a bid to decrease environmental degradation and align with environmental goals set by the Argentine government.

Impact of COVID-19 on Mergers, Acquisitions & Corporate Restructurings

Abstract: Most economic downturns have stemmed from inefficiencies in the economic system. This research paper aims at investigating the impact of the COVID-19 pandemic—an exogeneous health crisis—on global mergers and acquisition (M&A) activity. By gathering statistical data about global transaction volume, value, and type, the study aims at getting a pulse of how mergers, acquisitions, and other restructuring activities have been utilized to support corporate objectives amidst these unprecedented times. While the full-fledged impact of COVID-19 cannot be fully captured at the moment (early 2021), the study attempts to illustrate how this change to economic stability caused a Schumpeterian creative destruction of industries. As firms prepare for the growth that will follow this downturn, M&A will enable companies to look into a future infused with technology and structurally different business models. This research paper thus captures the deliberate transformation occurring in the deal world to discuss the possible outlook of the M&A deal market in the post-pandemic world.

Enterprises' strategies transformation in the real sector of the economy in the context of the COVID-19 pandemic

Abstract: The article examines the impact of the COVID-19 pandemic on the content of key functional strategies of companies in the real sector of the economy The purpose of the article is to assess the changes in the economic behaviour of companies in the context of the COVID-19 pandemic, to analyse business practices in adapting functional strategies to new risks, and to determine the directions for transforming functional strategies An analysis of companies' business practices showed that the pandemic had a significant impact on the economic behaviour of companies, transforming not only their tactics, but also their strategy The functional strategies of the companies have undergone significant changes - marketing, production, personnel management strategies The transformation of the marketing sphere is due to new trends in the sphere of consumption that have arisen as a result of the introduction of restrictive measures by states The changed conditions of production activities necessitated accelerated digitalization and robotization of production, restructuring of supply chains and determined the need for the formation of innovative production strategies that meet the conditions of the Industry 4 0 era The strategy and tactics of personnel management of companies are adapting to the conditions of the epidemic using a remote work format, digitalization of processes and tasks, and the use of new approaches in management Based on the results of the study, the authors concluded that the pandemic has highlighted problems in the ability of companies to learn quickly in a rapidly changing environment Today, the surviving companies are those that have been able to best adapt to unforeseen threats For them, the coronavirus pandemic is not the cause of the crisis, but a turning point and a unique opportunity to develop in a highly competitive environment © 2021 Natalia Baryshnikova et al , published by Sciendo 2021

New paradigm of logistics space reorganization: E-commerce, land use, and supply chain management

Abstract: The burgeoning electronic commerce has contributed to enormous demand for developing new logistics facilities dedicated to processing online shopping orders. However, how logistics land uses have been reshaped to accommodate the e-tailing demand has not been adequately studied. By examining the trajectory of logistics space development during the last decade in Shenzhen, an e-tailing hub in China, this study reveals a less common trend of logistics space restructuring that has been identified in a series of existing studies. Results from spatial data analysis indicate a more clustered logistics space across the city, in spite of a slight decrease in the total number of facilities. We argue that e-tailing has acted as a catalyst for determining how logistics facilities are designed, redeveloped, relocated, and utilized to match with changing requirements in supply chain management. Development of new multi-story facilities, renovation of obsolete facilities, and reorganization of existing facilities at regional level, are the major types of land-use efforts to fill in the supply-demand gap in logistics space in this rapidly-urbanizing city with shrinking land availability. The findings could help the governments reconsider the interactions between e-tailing, logistics demand, and sustainable land use patterns in policymaking.

Emerging fiscal health and governance concerns resulting from COVID-19 challenges

Abstract: Purpose –This study analyzes the scope and magnitude of the budgetary responses of 17 developed countries to the COVID-19 pandemic and examines whether policy responses in March–June, 2020 are correlated with economic and fiscal conditions in these countries. It also suggests a few foreseeable economic, budgetary and social challenges and a future research agenda for assessing the pandemic’s impact on finance and governance. Design/methodology/approach –This study uses documents from different sources, including the IMF and the OECD, to analyze systematically the COVID-19 budgetary responses of different countries. It also uses data from the IMF and the European CDC to analyze the relationship between budgetary responses and the seriousness of the pandemic in different countries. Findings – This study shows that budgetary and fiscal responses to the COVID-19 pandemic varied in magnitude but had many similarities in policy types across countries. The magnitude of the response is not significantly correlated with fiscal conditions but is positively correlated with the pandemic caseload and negatively with medium-term expenditure planning, healthcare spending and anticipated unemployment changes. The study concludes by discussing the medium- and long-term concerns of these policies, such as the growing debt concerns, the seeming irrelevancy of fiscal discipline in influencing the pandemic response, the setbacks on anti-poverty and equity enhancing initiatives in developing countries and the hidden social costs as a result of postponing the necessary responses to industrial restructuring and the global climate change problems. Research limitations/implications – This study offers an initial comparative analysis of COVID-19 budgetary responses among developed nations. It also provides a critical and long-term perspective of these policies. The study suggests what future research may do to analyze the factors that influence the magnitude of COVID-19 responses and the long-term social and political implications of these policies. Practical implications – It discusses the long-term concerns of COVID-19 budgetary responses and suggests policymakers to have more open and transparent debates about difficult choices. It provides examples of creative solutions in pandemic responses to transition to a future economy and society that can be more sustainable, resilient and equitable. It also urges policymakers to pay more attention to democratic governance challenges. Social implications – The study highlights a few social concerns about the budgetary responses so far, such as deteriorating pension funding gaps, setbacks on anti-poverty initiatives in developing countries and hidden social costs by postponing the necessary responses to industrial restructuring and global climate change problems. It also discusses how COVID-19 reveals a lot of inequity problems in society that need long-term budgetary investment. Originality/value – This study offers a systematic comparative analysis of COVID-19 budgetary responses among developed nations. It also provides a critical and long-term perspective of these policies and challenges policymakers and budgeters to think more creatively to address foreseeable economic, budgetary and social challenges.

Deglobalization, globalization, and the pandemic current impasses of the capitalist world-economy

Abstract: This article is a theory piece focused on causal propositions codification and future trends identification, both supported by descriptive statistical data. It aims to analyze the middle-term dynamics of globalization and deglobalization due to the effects of the 2007-2008 Financial Crisis, in general, and the COVID-19 pandemic, in particular. The broader context in which such dynamics are situated are the processes of capitalist world-economy restructuring, propitiated by the crisis the U.S. hegemony, on the one hand, and by the Chinese rise, on the other. We argue that the COVID-19 pandemic tends to deepen and accelerate ongoing processes of global fragmentation, especially in the productive and commercial dimensions. From the point of view of governments, in particular the United States, there are growing protectionist and manufacturing repatriation efforts. From the point of view of large corporations, the perception of risk derived from the suspension and rupture of global production chains emerges thanks to measures to prevent infection. Somehow, governments and companies can converge on understanding the world market as a growing source of risk and decreasing advantages. The counterpoint here may be China's interest and ability to lead the fight against the pandemic and post-pandemic recovery, restructuring the global order built in the last forty years in new institutional basis and from which it has been the main beneficiary.

Systematic review of sourcing and 3D printing: make-or-buy decisions in industrial buyer–supplier relationships

Abstract: Additive manufacturing (AM) is regarded as a technology that has transformative and disruptive potential in nearly all industries. However, AM is not only about new production equipment and processes. Given the decreasing degree of vertical integration in many companies, suppliers add significant value to the finished product. AM might lead to the redesign of production networks, including a scenario in which the buyer uses AM to produce parts with data provided by suppliers. Overall, AM could have a major impact on the ways in which buyers and suppliers collaborate in the future. Nevertheless, research on AM in the field of industrial procurement remains scarce. This is surprising, given that AM is not only changing traditional procurement categories and creating new ones (comprising printers, powder raw materials, data and the associated engineering services) but AM’s widely discussed potential for decentralisation might also restructure the logistical aspects (transport, stocks) of supply chains. In addition, AM may resurrect the old procurement question of ‘make or buy’. Current research focuses on the logistical aspects of AM and concerns such issues of decentralisation (such as the diminishing need for transportation and the design of transport networks). In contrast, this research addresses the question of whether AM demands new answers to strategic sourcing questions. For this purpose, academic journal literature concerning procurement and AM search strings is reviewed. Selected articles are analysed using a fine-grained analytical framework of procurement strategies. The findings show that existing research lacks theoretical approaches and a systematic view of the topic. Specifically, the analysis reveals a number of distinct knowledge gaps, which present several potential directions for future research.

BIM Adoption in Construction Contracts: Content Analysis Approach

Abstract: Building information modeling (BIM) is rapidly restructuring the construction industry, offering major enhancements in project outcomes. Although the emerging demands for BIM adoption are d...

The limited transformational power of adaptive governance: a study of institutionalization and materialization of adaptive governance

Abstract: textFollowing the economic crisis in 2007–2008, many urban regeneration programmes were replaced with forms of adaptive governance (e.g. slow urbanism). This paper maps and analyses transformational effects of such adaptive governance initiatives through a case of neighbourhood restructuring. It studies whether adaptive governance institutionalizes – i.e. transforms the existing governance system – and whether it materializes in the built environment. It shows how the adaptive governance initiatives in this case failed to diffuse and endure, and, therefore, the transformational effect on both the existing governance system and the area has been limited. The reasons for this are discussed.

The Aftermath of Debt Surges

Abstract: Debt in emerging market and developing economies (EMDEs) is at its highest level in half a century. In about nine out of 10 EMDEs, debt is higher now than it was in 2010 and, in half of the EMDEs, debt is more than 30 percentage points of gross domestic product higher. Historically, elevated debt levels increased the incidence of debt distress, particularly in EMDEs and particularly when financial market conditions turned less benign. This paper reviews an encompassing menu of options that have, in the past, helped lower debt burdens. Specifically, it examines orthodox options (enhancing growth, fiscal consolidation, privatization, and wealth taxation) and heterodox options (inflation, financial repression, debt default and restructuring). The mix of feasible options depends on country characteristics and the type of debt. However, none of these options comes without political, economic, and social costs. Some options may ultimately be ineffective unless vigorously implemented. Policy reversals in difficult times have been common. The challenges associated with debt reduction raise questions of global governance, including to what extent advanced economies can cast their net wider to cushion prospective shocks to EMDEs.

Capitalist Convergence? European (dis?)Integration and the Post-crash Restructuring of French and European Capitalisms

Abstract: This article critiques and builds upon first-wave (Hopner and Schafer 2010. A new phase of European integration: organised capitalisms in post-Ricardian Europe. West European Politics, 33 (2), 344–...

Safety First: Expanding the Global Financial Safety Net in Response to COVID‐19

Abstract: We call for strengthening the Global Financial Safety Net (GFSN) to manage the economic effects of COVID‐19, in particular the massive capital outflows from emerging market and developing economies EMDEs and the global shortage of dollar liquidity. Both the United Nations (UN) and the International Monetary Fund (IMF) estimate that EMDEs need an immediate $2.5 trillion, yet the financing available to them is just $700 to $971 billion. To meet these immediate needs we propose to: (1) broaden the coverage of the Federal Reserve currency swaps; (2) issue at least $500 billion of special drawing rights through the IMF; (3) improve the IMF’s precautionary and emergency facilities; (4) establish a multilateral swap facility at the IMF; (5) increase the resources and geographic coverage of regional financial arrangements; (6) coordinate capital flow management measures; (7) initiate debt restructuring and relief initiatives; and (8) request that credit‐rating agencies stop making downgrades during the emergency. It argues that leaders should swiftly move to address these structural gaps in the GFSN: (1) agree on a quota reform at the IMF; (2) create an appropriate sovereign debt restructuring regime; (3) expand surveillance activity; and (4) adopt IMF governance reform and strengthen its relations with all agents of the GFSN. All of these reforms must be calibrated toward a just transition to a more stable, inclusive, and sustainable global economy.