Turnaround success of large and midsize Chinese owned firms: Evidence from Hong Kong and Thailand

During the early 1990s, massive amounts of investment from around the world in the form of both debt and equity poured into East Asia. However, beginning in the middle part of this decade a decline in the macro economies of this region placed many firms into decline. The macro economies of the region have recovered to various degrees. International investors and lenders increasingly see the potential to reverse the decline of the firms in which they have invested. But to date, the discussion of how firms in East Asia can turn themselves around has been limited. This investigation demonstrates that many of the ways in which large publicly traded firms are able to successfully turn around in the West do not apply to similar firms in East Asia. The differing role of a CEO and the impact of culture on managerial actions change how a successful turnaround must be pursued. Turnaround in firms in East Asia is possible, but the evidence is that those efforts must be tailored to the setting and environment in which firms find themselves.