In this adverse economic environment a great deal of attention should be devoted to the warning signs of decline so that we can transform it into a crisis and promptly seek turnaround options. The ferment created with the entry of the turnaround fund operators has given new energy to our investigations. We first analyzed the importance of the crisis prediction methods. Then we examined the possible causes which lead to a crisis and among these we highlight the problems related to corporate governance. We carried out an empirical study and we explained our preliminary results. We identified a panel of venture capital-backed SMEs in turnaround (cluster) to analyze three aspects: 1-if firms heading towards a crisis can be detected earlier through warning signs; 2-we tried to verify the restructuring role of corporate governance, with the definition of a good governance index for SMEs (scG); 3-we completed a crossover study with an analysis of the firms’ post-restructuring performance and we repeated the sintering of an ad hoc indicator (scP). In conclusion, the analysis of important management aspects through the development of an index Z-score, scG, scP, allows us to compare situations that are not readily comparable in terms of accounting. This is just the first step in our work in progress and we aim to expand the sample, introduce more extensive comparison samples, apply other crisis prediction methods and test the indicators in other situations.
The Corporate Governance in turnaround strategy: the definition of index of good governance and performance evidence
MARIANI, GIOVANNA;
2011-01-01
Abstract
In this adverse economic environment a great deal of attention should be devoted to the warning signs of decline so that we can transform it into a crisis and promptly seek turnaround options. The ferment created with the entry of the turnaround fund operators has given new energy to our investigations. We first analyzed the importance of the crisis prediction methods. Then we examined the possible causes which lead to a crisis and among these we highlight the problems related to corporate governance. We carried out an empirical study and we explained our preliminary results. We identified a panel of venture capital-backed SMEs in turnaround (cluster) to analyze three aspects: 1-if firms heading towards a crisis can be detected earlier through warning signs; 2-we tried to verify the restructuring role of corporate governance, with the definition of a good governance index for SMEs (scG); 3-we completed a crossover study with an analysis of the firms’ post-restructuring performance and we repeated the sintering of an ad hoc indicator (scP). In conclusion, the analysis of important management aspects through the development of an index Z-score, scG, scP, allows us to compare situations that are not readily comparable in terms of accounting. This is just the first step in our work in progress and we aim to expand the sample, introduce more extensive comparison samples, apply other crisis prediction methods and test the indicators in other situations.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
