VALUE OF SHAREHOLDERS IN THE TURNAROUND PROCESS: A SIGNALING THEORY PERSPECTIVE

Clay Dibrell

John Francis The University of Memphis Memphis , TN

Robert Van Ness Marshall University Huntington, WV

Abstract

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.

Sub Content Box

Gibson D. Lewis
Center For Business and
Economic Development
SHSU Box 2056
Huntsville TX 77341-2056
936-294-1518 Center Office
936-294-3957 Center Fax