회생절차종결로서 M&A의 성과에 대한 실증분석

Abstract

The M&A (i.e. merger and acquisition) of a firm by obtaining authorization of corporate restructuring from a court by a third party to reorganize the insolvent firm has recently been recognized as one of the most effective way to facilitate corporate restructuring. In this study, we will analyze the effectiveness of M&A's as a measure to reconstruct insolvent corporations. We will make a comparative analysis between Reorganized firms using M&A's, and Reorganized firms that executed their corporate restructuring process by themselves. Our research will limit itself to firms that underwent corporate restructuring between June 1, 2000 and December 31, 2005. First, according to the analytical results of firms reorganized by M&A's, the company's debt ratio and dependence on borrowings from banks continued to decrease as years passed. This is compared to reorganized firms that executed their corporate restructuring process by themselves. This is because consolidated bonds, which are a main factor in insolvency, are redeemed through the M&A. However, in terms of total cash flow, the debt ratio and the bank loan ratio did not get any better than in the years before the corporate restructuring process. However, the sales ratio improved over the year before than the corporate restructuring process. It does provide cash flow for investing activities, which will be the basis for the continuous growth of a company. Second, as for the firms that carried out corporate restructuring procedures by themselves, the bank loan ratio and dependence on borrowings from banks improved after the corporate restructuring process. However, the improvement was not as strong as that of companies restructured by M&A's. Similarly, the total cash flow to debt ratio, bank loan ratio and sales ratio didn’t improve. In conclusion, companies that one restructured by M&A's stand in a better financial position than companies that handle their corporate restructuring process by themselves. It can be pointed out from this study that me restructured companies bring more positive and effective outcomes than firms that conduct the corporate restructuring process by themselves. Therefore, M&A's should be utilized in a positive manner for effectively reorganizing insolvent companies.