Financial Crisis and Changes in Firm Governance, Corporate Structure, and Boundaries
Article first published online: 22 JAN 2013
Copyright © 2013 John Wiley & Sons, Ltd.
Managerial and Decision Economics
Volume 34, Issue 6, pages 363–378, September 2013
How to Cite
Polat, R. and Nisar, T. M. (2013), Financial Crisis and Changes in Firm Governance, Corporate Structure, and Boundaries. Manage. Decis. Econ., 34: 363–378. doi: 10.1002/mde.2596
- Issue published online: 4 JUL 2013
- Article first published online: 22 JAN 2013
The paper researches the effects of the 2008 financial crisis on various measures of firm governance, including the impact on firm boundaries such as buyer–supplier relationship, capital structure, and employment effects. Using a unique data set of 1686 Eastern European firms, we examine how the crisis affected the financial and employment decisions of different industrial and service sector firms. As these firms faced a steep decline in sales and capacity utilization, as well as credit constrains, they were forced to make significant and far reaching changes in various aspects of their operations. We discuss the implications of these changes. Copyright © 2013 John Wiley & Sons, Ltd.