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Adopting digital transformation is changing the methods through which companies' function, generating novel possibilities and difficulties that force firms to adjust to remain competitive in the digital era. It is critical for firms to embrace this change and utilize technology to develop a more flexible, proactive and effective approach as digital transformation continues to advance at an accelerating pace. Vietnam has been placed at the forefront of these changes in attracting investments and becoming a hub of international trade. As a result, Vietnamese firms have been implementing restructuring and adopting digital transformation to remain competitive with the flow of foreign investment. This paper aims to examine the effects of digital transformation on corporate restructuring in Vietnam. The authors then investigate the moderating role of corporate governance in the digital transformation – corporate restructuring nexus.

The authors employ content analysis to extract information from the annual reports of 747 Vietnamese listed companies, where the authors focus on specific phrases, such as “digitalization”, “big data”, “cloud computing”, “blockchain” and “information technology” over a period of 11 years, from 2011 to 2021. The frequency count of these keywords is calculated to represent the level of digital transformation for the Vietnamese listed firms. A final sample of 118 Vietnamese listed firms with sufficient data is selected for the analysis using the generalized method of moments (GMM) approach.

The results indicate that digital transformation and corporate governance negatively impact corporate restructuring when their effect on corporate restructuring is examined independently. However, corporate governance strengthens the effect of digital transformation on corporate restructuring.

This paper is one of the first to investigate the moderating role of corporate governance on the effect of digital transformation on corporate restructuring in Vietnam. The findings inspire listed firms in Vietnam to implement digital transformation during their corporate restructuring to enhance performance.

When faced with a financial crisis, debtor countries rarely choose to default on their international financial obligations. Instead, they typically choose to renegotiate their debt service obligations. According to a number of economists, the main motivating factor behind borrowers' and creditors' willingness to restructure is the benefit associated with preserving international trade ties. This raises an interesting question: is the benefit associated with maintaining international trade ties shared equally between the borrower and creditor banks? Or is the outcome dependent on a so-called ‘bargaining game’ between the borrower and creditor banks, and if so, can we identify these variables? According to our analysis, as a borrower's trade ties with developed countries strengthen, the borrower's (and/or creditor's) bargaining power diminishes (strengthens) and it thereafter agrees to restructure at less favourable terms. However, even after controlling for trade ties, we found that major borrowers were able to extract more concessions from the lenders.

Purpose – We investigate the impact of CEO turnover on performance and accounting-based outcomes following major business restructurings.

Design/Methodology/Approach – We analyze a sample of 217 major operational restructurings during the period 1999–2007 using regressions and other statistical tests.

Findings – We document significant improvements in postrestructuring operating and investment efficiencies with little differentiation between restructurings that involve a change in CEO and those that involve continuing CEOs. However, we find evidence of lower accounting quality for the continuing CEO firms. First, restructuring charges of CEO turnover firms are associated with lower current period unexpected core earnings and higher future period unexpected core earnings (lower levels of classification shifting). Second, CEO turnover firms have a significantly lower percentage of (i) restructuring charge reversals and (ii) prereversal shortfalls (in meeting analyst forecast estimates) followed by reversals (suggesting lower levels of subsequent earnings management). Therefore, turnover CEOs are less likely to manipulate restructuring charges to mask true economic performance than continuing CEOs. Overall, our evidence suggests continuing CEOs undertake less substantial restructurings, while opportunistically reporting similar charges and performance improvements, consistent with attempts to pool with new CEO hires to keep their jobs.

Originality/Value – Overall, our results highlight the key economic role played by top corporate managers in major business restructurings, suggesting that CEO turnover leads to both real changes in managerial actions and altered reporting incentives.

Sukuk restructuring primarily aims at offering a debtor more latitude, in form and time, to settle his obligations. To meet Shari’ah requirements of transferring assets to Sukuk holders in asset-based Sukuk, the originator usually transfers the beneficial ownership to the issuer special purpose vehicles (SPV). However, in asset-backed Sukuk, the originator sells the underlying asset to an SPV and Sukuk holders do not have recourse to the originator in the event of defaults. Among some key unresolved Shari’ah issues in this regard is whether a change of contract necessitates entering a new contract. Other related issues that conflict with the tenets of Shari’ah are: (1) Sukuk structuring on tangible assets and debts; (2) receiving the full title by the Sukuk holders to the underlying assets in the event of default in case of securities that are publicized as asset backed; (3) Sukuk’s similarity with interest bearing conventional bonds: (a) capital guarantee by the originator or third party, (b) the originators’ promise to repurchase Sukuk at face value upon their redemption, and (c) providing internal and external credit enhancement. The Shari’ah-compliance of the above-mentioned clauses and structures of Sukuk remain debated among the Shari’ah scholars. Based on some specific cases, this study examines the Shari’ah viewpoint on sukuk restructuring and potential solutions to these unresolved Shari’ah issues in light of the past and recent declaration of some Sukuk defaults as non-Shari’ah complaints. Undoubtedly, resolution of these and other unresolved issues pertaining to Sukuk defaults can help strengthen the confidence of investors in Islamic capital market structures.

This study aims to analyze the effect of cognitive load and social value orientation on managers’ preferences when they face with two types of restructuring choices in financially distressed firms: the first belonging to the family of organizational restructuring (massive layoffs) and the second to the family of financial restructuring (debt increases).

The authors investigate experimentally the impact of managers’ cognitive load and social value orientation on the decision to restructure leveraged buyout (LBO) firms in financial distress by using either massive layoffs or debt increases.

By investigating the impact of managers’ cognitive load and social value orientation on the restructuring decision of an LBO firm in financial distress, the research reveals that, on average, cognitively loaded managers prefer massive layoffs over increased debt levels. The massive layoffs seemingly provide a relatively easier way to avoid conflict with influential, residual claimants. In contrast, social value–oriented managers actively avoid massive layoffs and prefer to increase debt.

These results imply that the performance mechanisms emphasized to improve agency relations, for example, in LBOs, have their own limitations during periods of financial distress. This study shows that one of these limits is related to cognitive distortions and personality traits.

In this research, the originality lies in understanding how managers’ internal factors affect their restructuring decision-making, in the case of LBO firms in financial distress.

Increased competition and resource scarcity have caused hospitals to seek internal efficiencies by restructuring their structures and processes. The purpose of this paper is to examine the effects of an organization's orientation toward control and learning and the use of process facilitators on perceived organizational consensus on outcomes related to cost, quality, and the ability to sustain implemented changes following a major hospital restructuring.

Data from 263 hospitals from across the USA were collected. Factor analysis was employed to develop scales measuring the organization's emphasis on learning, controls, and processes. Regression analysis then examined their relationship to the consensus on restructured outcomes.

The findings suggest a positive relationship between a learning orientation and processes with improved perceived agreement on restructuring outcomes. Hospitals with control orientations have a negative relationship with perceived organizational consensus.

The research has some limitations. The primary data for both the CEOs' and employees' perspectives comes from hospital CEOs. Also, the study is a cross‐sectional study and lacks longitudinal information. It also includes mostly not‐for‐profit hospitals, with 100 or more beds, in urban areas.

Hospitals will continue to feel pressures for the need to restructure and change. The findings suggest that hospitals achieve better results if they foster a learning orientation and put in place processes to facilitate the challenges of change. Although control systems are important, executives should realize that they might impede organizational efforts during organizational change. Hospitals may succeed in their change efforts by balancing adequate control and learning that are supported by processes to facilitate restructuring efforts.

The work provides an original study on the effects of an organization's orientation of learning and controls and change processes on the perceived consensus of restructuring outcomes. The dichotomy of learning and controls has not been applied to hospital consensus on outcomes. The research suggests that hospitals can improve their change efforts by implementing appropriate processes and greater learning mechanisms. During times of stress and change hospitals often become more control oriented, which may create greater misalignments and ineffective change. Managers should learn from the research that appropriate processes and learning will provide better consensus and more effective change.

Examines the effects of hospital restructuring and downsizing on components of psychological burnout experienced by a predominantly female sample of hospital‐based nursing staff. Collects data from 1,362 staff nurses using anonymous questionnaires Considers three components of psychological burn‐out: emotional exhaustion, cynicism and prfessional efficacy. Includes three blocks of predictors: personal demographics, work situation characteristics, and three different measures of demands resulting from a restructuring experience. Concludes the experience of hospital restructuring and downsizing was consistently related to a high level of emotional exhaustion and cynicism, controlling for personal demographic and work situation characteristics.

This study investigates the effects of corporate restructuring – scale and scope, on the financial performance and long‐term competitiveness during the 1980s in a data set of 107 manufacturing firms. Hypotheses were tested using Ordinary‐leastsquare (OLS) Regression model. Overall, this study found that: (1) corporate restructuring scope is inversely associated with firms’ performance, as expected; (2) the effects of restructuring scope on changes in competitiveness offer partial support for our hypotheses; (3) there was no support for the hypothesized relationships between restructuring scale and performance, and between restructuring scale and changes in competitiveness. Implications for future research in corporate restructuring are discussed.

Organizational scholars are intrigued about stakeholders who propose multiple and conflicting ideas about what is good for their organization. Such contradictions are called paradoxical tensions. Although researchers have singled these out for analysis, focusing only on individual tensions prevents scrutiny of multiple paradoxical tensions that simultaneously emerge and how effectively organizations can manage them. In complex environments – especially during an organizational restructuring – multiple and interrelated tensions occur. Therefore, the objective in this paper is to investigate how organizations create multiple paradoxical tensions and how the combined effect of such tensions can constrain organizations during restructuring. The authors thus aim to help managers think reflectively and to plan interventions to deal with issues arising from restructuring through the lens of paradox theory.

The authors adopted purposive sampling for an archival research-based case study of a major restructuring of a leading IT firm in India in the decade 2009–2019. This study focused on the types of paradoxes created and the response of the organization to these during the restructure. The authors identified key events using public documents and news reports from that decade. They drew on two sources of data: mainstream media coverage and third-party documents about the company. The latter included monographs and academic publications written by critics, business historians and design and management scholars.

The findings address the gaps in the literature about how reorganizing during a restructure shapes the contradictions that lead to tensions and coexisting conflicting dualities, creating paradoxes. This study provides the reader with deeper insights into belonging, organizing, learning and performing tensions – core to paradox theory – along with their short- and long-term implications for organizational restructuring. The study demonstrates organizational responses to paradox and its practical implications for managers. The paradoxical nature of cultural–structural tensions in Indian organizations continues to be researched but, by focusing on paradox theory, the authors have opened doors for future research.

Although there is no dispute that effective management of tensions can facilitate organizational performance, contradictory demands that lead to tensions have only intensified as organizational environments become more global, dynamic and competitive. Paradox theory is thus valuable for understanding tensions between equally valid principles, inferences and insights. Although this paper is based on a case study, the framework proposed here can form the basis for theoretical generalizability within certain limitations. Because organizations face similar paradoxical situations under competing demands during restructuring and because paradoxes are becoming increasingly prevalent in organizations, the authors expect their propositions to apply in other cases of restructuring. However, the authors would like to caution that the model developed here should be tested and refined in other contexts to more fully establish its validity and generalizability.

This paper is a case study of the Republic of Macedonia and focuses on the development of governance and enterprise restructuring. Thus, country's effective corporate governance and corporate control, which impact enterprise restructuring, are essential in the analysis of market-driven restructuring through domestic financial institutions and markets. The data used in this article are analyzed with an econometric regression model, which as employed in this study examines the interrelationships between governance and enterprise restructuring and set of policies that influence the governance patterns. Two basic hypothesis are taken in the analysis: first, governance and enterprise restructuring depend on set of policies, such as, large-scale privatization, small-scale privatization, price liberalization, competition policy, trade and foreign exchange system, banking reform and interest rate liberalization, securities markets and non-bank financial institutions and overall infrastructure reform; and second, governance and enterprise restructuring improves over time due to imposed policies. The paper aims to discuss these issues.

The data used in this article are analyzed with an econometric regression model, which as employed in this study examines the interrelationships between governance and enterprise restructuring and set of policies that influence the governance patterns.

There is still more to be done in order to bring these economies closer to the standards of developed ones. Indeed, it is needed considerable improvement of corporate governance, institution-building to control agency problems and imposing already adopted regulation, as well as, enforcing new enterprise restructuring policies, within existing policies of overall transition economy restructuring.

This paper is a contribution to the research developing the business aspects of the Macedonian economy, as there is constant lack of scientific papers that deal with the specific issues of corporate governance and enterprise restructuring.