ABSTRACT
A restructuring strategy is a corporate level strategy by which a firm changes the set of its businesses or its financial or organizational structure. Reducing the scope of the firm through divestment and restructuring has become increasingly popular as a corporate level strategy, particularly among the firms that diversified into unrelated businesses during the 1960s, 1970s, and 1980s. However, restructuring does not always mean a reduction of the scope of the firm; it also can encompass a broad range of transactions, such as selling business lines, making significant acquisitions, changing the capital structure through an infusion of debts, or altering the internal organization of the firm. To organize the wide range of existing restructuring activities, we can distinguish between three main types: organizational restructuring, financial restructuring, and portfolio restructuring. An important reason for restructuring is a firm's poor corporate performance.
