Lion Group

APPENDIX 11 Corporate Restructuring and Its Wealth Effects: The brass of lion Group Abstract The case try show up evolves around four promulgations related to a specific incorporated restructuring proposal. The primary reason for the corporate restructuring is to reconstitute the debt of six companies, lion Industries (LICB), Silverstone (SCB), Amsteel Corp Berhad (ACB), king of beasts Corpo balancen (LCB), Lion Forest Industries (LFI) and Lion Diversified Holding Berhad (LDH). The track immortalise of the companies reveal that these companies eat up been heavily levered causing them to be financially risky and therefore, highly sensitive to any economic shocks, let alone such(prenominal) a fatal financial typhoon like the 1997 economic crisis. As at the end of the meditate compass point on June 30, 2003, that is, more than three years after the sign announcement of the proposed corporate restructuring, the plan has yet to complete. Nonetheless, the pre sent study manages to say some interesting results. By applying the common event-study approach, the results assign that randomness about the restructuring plan has been significantly conveyed to the market in separately restructuring announcement. Generally, the market regards all announcements in event windowpane (-1,+1) unfavorably. 2.0 THE COMPANIES fiscal BACKGROUND 2.

1 THE COMPANIES FINANCIAL HISTORY The selected financial selective information in this study are selected based on its supposititious relationships with the probability of degenerate to meet its debt-service obligations. Ofek (1993 ) and Baek, et al. (2001) apply two radica! l variables, capital mental synthesis and profitability, when examining the responses of financially distressed firms to brusk performance. The capital structure characteristics used by Ofek (1993) are adopted including leverage and liquidity balances. leverage is deliberate by debt ratio and gearing ratio. Liquidity is beakd by current ratio and quick or deadly test ratio. Performance measure used are ROE, ROA and Tobins Q. Over...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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