Corporate Turnaround: An Empirical Study on Chinese Small Sized Companies

For decades, researchers have been reporting theoretic models or case studies suggesting that the turnaround strategies and actions can help companies to survive decline in performance. But they have not been applied to small business decline. We close this gap by investigating the small turnaround and non-turnaround companies listing on the stock market from 1997 to 2004 and examining the determinants resulted in their turnaround which is defined to the successful result of the actions to improve performance. The result of multivariate logistic regression indicates that the changes of the CEO, the industry structural problems, the substitute of the board members, net organizational capital (NOC) and the strategic change can be helpful in explaining turnaround