| This study of corporate turnaround focuses on companies facing major financial distress and decline. These companies had to make significant changes and select a strategy for successful renewal. The study also looks at the role of leadership as a principal factor in making turnaround successful as characterized by the change in CEO and in the board of directors.;Turnaround activity can be described in many terms and it can have many measurements, including stock price, profitability, effectiveness, efficiency, turnover, sales volume, positive cash flow, and RIO. In fact, successful turnarounds incorporate some or all of these. In this study, corporate turnaround is studied in its most severe situation: when corporations face bankruptcy, then turnaround and survive. When corporations are in financial distress and facing bankruptcy, they have to employ turnaround strategies that they believe will help the firm thwart bankruptcy. This strategic direction could mean adopting a combination of strategies that fit within its limited resources. This study examined 142 companies that have filed for Chapter 11 bankruptcy protection in the past 18 years. Additionally, this study highlighted the most effective turnaround strategies that allowed 86 of these companies to emerge from Chapter 11 bankruptcy and compared them with the 56 companies that went bankrupt. |
