Firm Restructuring System in Korea: A Comparison of Firm Performance Between Policy Finance Institutes and Private Banks

The performance of firm restructuring led by policy finance institutes in Korea was analysed using quantitative methods. Firm performance in terms of the probability of graduating from the restructuring process, profitability and financial soundness for restructuring firms managed by policy finance institutes was compared against those managed by private banks. Data analysis using the propensity score matching (PSM) and Heckman models found the following characteristics in the firm restructuring led by policy finance institutes in Korea. First, the probability of graduating from restructuring was statistically significantly lower in the firms managed by policy finance institutes. Second, the strength of restructuring in terms of material and human resources since the start of restructuring was statistically significantly stronger in firms managed by policy finance institutes. However, whether the policy finance institutes were the main creditors since the start of the restructuring process significantly reduced the firms’ sales. Nevertheless, it did not affect their profitability in a statistically significant manner. Considering that relatively more financial resources are injected into the restructuring firms managed by policy finance institutes, it can be concluded that the firm restructuring led by policy finance institutes is less efficient.

Productive Efficiency And Optimal Firm Size: The Case Of US Health Services Industry

This paper examines the link between firm size and productive efficiency. In so doing, it attempts to determine optimal firm sizes in terms of market capitalization and total asset thereby allowing firms to achieve higher level of productive efficiency. The results indicate that the optimal firm size in terms of market capitalization is $13.1 billion. In terms of total asset, the optimal firm size is $10.3 billion. The results also suggest that there is a threshold above which an increase in firm size adversely affects the level of productive efficiency. The results have important implications for managerial policies regarding firm restructuring. To achieve higher productive efficiency, smaller firms have to pursue expansion strategies through mergers and acquisitions. Larger firms, on the other hand, have to pursue divestment strategies to reduce the size of their assets, particularly by refocusing on core competencies.

From Militancy to Clientelism: Labor Union Strategies and Membership Trajectories in Contemporary Chile

For the past 30 years, Chilean unionism has been shrinking. Through a comparison of the membership trajectories of 26 unions in two firms between 1990 and 2004, this article explains why some unions defied this trend and how their success affected overall union density in their firms. It argues that the unions that experienced the most favorable membership outcomes were those that, at key junctures of firm restructuring, earliest or most aggressively established a partnership relationship with management. However, in a context of great labor weakness, these cases of union accommodation took the form of exclusive patron-client exchanges, which exacerbated collective action problems and further eroded union density.