Measuring the Impact of Financial Factors on Corporate Restructuring Among Selected Corporations in the Philippines: A Comprehensive Analysis using a Multinomial Logistic Regression Model

• Main Authors: Fernando, Anna Margarita, Guinto, Lorenzo B., Landicho, Elizarde J., Yu, Allan Jerome L.
• Format: text
• Language: English
• Published: Animo Repository 2012
• Subjects: Logistic regression analysis; Regression analysis; Corporations > Finance; Accounting
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/10561
• Institution: De La Salle University

The study is considered as a correlational and causal research combined, for it aims to determine the relationship of the independent variables to the corporate restructuring activities. Specifically, it focuses on identifying and measuring the impact of both financial and non-financial factors on the restructuring decisions made by distressed firms. The study is written to assist investors and other stakeholders in making sound decisions while dealing with distressed firms. It enumerates different variables which defines the strategies of firms given a five-year time period. The results of the study show that numerous factors indeed have a significant impact on corporate restructuring such as the cash position, the leverage, the profitability ratios, and the non-financial variables. Moreover, the variables have a different effect for each mode of corporate restructuring, as well as for the survival of the firms. However, there are also variables which prove to be insignificant for all cases like the liquidity of the firms. These results showcase the significance of the study to the various stakeholders involved and it would enable the stakeholders to make strategic investment decisions. Keywords: correlational, causal, corporate restructuring, distressed firms, financial factors, non-financial factors, investment decisions while dealing with the distresses firms. It enumerates different variables which defines the strategies of firms given a five-year time period. The results of the study that numerous factors indeed have a significant impact on corporate restructuring such as the cash position, the leverage, the profitability ratios, and the non-financial variables. Moreover, the variables have a different effect for each mode of corporate restructuring, as well as for the survival of the firms. However, there are also variables which prove to be insignificant foe all cases like the liquidity of the firms. These results showcase the significance of the significance of the study to the various stakeholders involved and it would enabled the stakeholders to make strategic investment decisions.