ICTACT Journal on Management Studies

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Influence of Corporate Restructuring Announcements on the Investment Decisions of the Investors


Affiliations
1 Saveetha School of Management, Saveetha University, India
2 Department of Management Studies, Pondicherry University, India
     

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Corporate restructuring strategies of the business entities may be resorted to enhance the profitability of a company or to tide over its weak financial position. Equity investors may give more importance to corporate restructuring deals of the company. Hence this study analyses the investor's opinion about the influence exerted by corporate restructuring strategies on their investment decisions. This study is descriptive in nature and based on primary data which have been collected from 513 equity investors. This study reveals that investors are interested in investing on shares of companies selling their loss making business. This study also reveals that gender, number of family members and investment avenues cast the maximum influence on investment decisions of investors based on corporate restructuring announcement.

Keywords

Corporate Restructuring, Joint Ventures, Divestures, Capital Structure, Organization and Management.
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  • Influence of Corporate Restructuring Announcements on the Investment Decisions of the Investors

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Authors

P. Praveen Kumar
Saveetha School of Management, Saveetha University, India
R. Kasilingam
Department of Management Studies, Pondicherry University, India

Abstract


Corporate restructuring strategies of the business entities may be resorted to enhance the profitability of a company or to tide over its weak financial position. Equity investors may give more importance to corporate restructuring deals of the company. Hence this study analyses the investor's opinion about the influence exerted by corporate restructuring strategies on their investment decisions. This study is descriptive in nature and based on primary data which have been collected from 513 equity investors. This study reveals that investors are interested in investing on shares of companies selling their loss making business. This study also reveals that gender, number of family members and investment avenues cast the maximum influence on investment decisions of investors based on corporate restructuring announcement.

Keywords


Corporate Restructuring, Joint Ventures, Divestures, Capital Structure, Organization and Management.

References