Corporate Sector Restructuring: The Role Of Government In Times Of Crisis
- Topics:
- Corporate Restructuring,
- Global Strategy
- Tags:
- Business Operations,
- Corporate Law,
- Corporate Restructuring,
- Finance,
- Financial,
- Financial Accounting,
- Financial Planning,
- Government,
- Taxes
- Source:
- International Monetary Fund
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Overview: Large-scale corporate restructuring made necessary by a financial crisis is one of the most daunting challenges faced by economic policymakers. The government is forced to take a leading role, even if indirectly, because of the need to prioritize policy goals, address market failures, reform the legal and tax systems, and deal with the resistance of powerful interest groups. The objectives of large-scale corporate restructuring are in essence to restructure viable corporations and liquidate nonviable ones, restore the health of the financial sector, and create the conditions for long-term economic growth. Corporate restructuring on a large scale is potentially one of the most challenging tasks faced by economic policymakers. The need for large-scale restructuring arises in the aftermath of a financial crisis when corporate distress is pervasive. The successful completion of restructuring requires a government to take the lead in establishing restructuring priorities, addressing market failures, reforming the legal and tax systems, and, perhaps most important, dealing with obstructions posed by powerful interest groups.
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Format: HTML | Date: Jun 2002 | Pages: 1
