Post Corporate Restructuring Analysis: The Case of Malaysian Resources Corporation Berhad (MRCB)

Purpose: This case study examines the long-term effect of corporate restructuring of Malaysian Resources Corporation Berhad (MRCB) in the period of 2000 to 2021.
Design/methodology/approach: Financial ratio analysis and event study approaches are employed as tools to evaluate the restructuring process, focusing on assessing the financial distress and analyzing the capital structure of MRCB.
Findings: Three proposed corporate restructuring (PCR) announcements are discussed for MRCB where the announcements were issued to specifically addressed troubled debt in the MRCB corporate structure. According to the event study approach, the PCR events were defined as the date when the firm first announced its restructuring plan. The event study approach examines the 50 days before and after PCR announcement. This study discovers that
the company have more financial stability and more prudent debt management after corporate restructuring which consequently result for better performance.
Research limitations/implications: This is a case study focusing on one company that is MRCB. Thus, the finding cannot be generalized to other companies with similar financial issues.
Practical implications: This finding of the case study assists managers to take appropriate action in designing and implementing corporate restructuring exercises as the success or failure of corporate restructuring depends on the deployment of an appropriate strategy.
Originality/value: This is the first case study to investigate the long -term effect performance of corporate restructuring.