[...]... dissertation is to analyze the effectiveness of restructuring activities in overcoming situations of financial distress in the international automotive supplier industry 12 It is based on the analysis of managerial, operational, financial, and asset restructuring of 194 publicly listed automotive suppliers between 1999 and 2008 1.1.2 Research target and questions The dissertation contributes to the current... define the automotive industry as a “very mature industry See EICHNER (2008, p 60) and CHRISTIE ET AL (2003, p 17) MOLDENHAUER/SEAGON (2008, p 35) quotes a study of Roland Berger Strategy Consultants, which sees automotive suppliers as the industry segment with the highest demand for corporate restructuring after the banking industry 1.2 MOTIVATION AND SIGNIFICANCE OF THE TOPIC 9 distress situations and. .. industries, and results of empirical studies are expected to be more meaningful and potentially transferable, even beyond industry boundaries.49 In addition, practitioners regard the automotive industry as among those having the highest risk of financial distress. 50 With the financial difficulties confronting the automotive industry, it is important that decision makers in the automotive supplier industry. .. (2001) Financial distress is one specific form of corporate distress and is defined as “a condition when a firm incurs more debt than its firm size, profitability, and asset composition can sustain” (LIN ET AL., 2008, p 542) Financial distress lies within the bounds of this study See SECTION 3.1.1 for a differentiation among stages of distress and the positioning of financial distress within the corporate. .. of the variables and measures used (CHAPTER 4.2), and the discussion of the statistical methods applied (CHAPTER 4.3) PART 5 includes the empirical analysis of restructuring actions of automotive suppliers At the beginning, an overview of the sample and important sample characteristics are provided (CHAPTER 5.1) The remainder of this part is structured in line with the three research questions and. .. over financial distress and corporate turnaround and provides recommendations for managerial decisions in one of the most relevant industry segments 13 Its purposes are to integrate the existing turnaround literature and to evaluate empirically the effectiveness of turnaround actions by financially distressed automotive suppliers Three questions guide this inquiry They concern the effectiveness of restructuring... research methodology applied here include the development of a theoretical research framework100 based on a detailed analysis of existing research, the formulation and operationalization of corresponding research hypotheses, the empirical testing of these hypotheses with the sample of publicly listed automotive companies, and finally the improvement of the initial theoretical framework.101 Research methods... SCHMALENBACH (1932) analyzed financing aspects of corporate turnarounds The general goal of turnaround research has not changed since then: to identify how companies can overcome distress situations The question of how distressed companies can successfully turn around is important for practitioners and scholars and has received considerable attention in the finance and strategy literature.1 Today, corporate. .. and the variety of turnaround strategies available to help them.51 Still, many managers find that the problems of company survival, down-sizing, and regeneration are ones for which they are often ill-prepared”52 1.2.2 Success factor research on corporate turnaround Business performance is at the center of any research on corporate turnaround.53 As part of the ongoing rigor-relevance debate in management... a single industry sector By including healthy companies that avoided financial distress, this research can distinguish true turnaround actions from actions of non-distressed automotive suppliers.35 1.2 Motivation and significance of the topic 1.2.1 Research object Automotive supplier industry The need to concentrate on one industry sector to enhance validity of the results was outlined in the previous . y0 w0 h0" alt="" Financial Distress and Corporate Turnaround Martin Schmuck Financial Distress and Corporate Turnaround An Empirical Analysis of the Automotive Supplier Industry Dissertation. among stages of distress and the positioning of financial distress within the corporate crisis progression. 13 For the selection of the research object Automotive supplier industry, ” compare. distress in the international automotive supplier industry. 12 It is based on the analysis of managerial, operational, financial, and asset restructuring of 194 publicly listed automotive suppliers