The Effects of Corporate Restructuring Strategies and Industry Uncertainty on Firm Performance: Evidence from Listed Non-Financial Firms in Vietnam
0
Online Published:
25/07/2026
Section:
Finance, Banking, Accounting, and Auditing
Main Article Content
Abstract
This study examines how asset retrenchment, debt restructuring, and operating cost retrenchment affect ROA among Vietnamese non-financial firms under high and low industry uncertainty. Using FiinPro data for 484 HOSE/HNX-listed firms from 2010–2024, the sample comprises 6.862 firm-year observations. Industry uncertainty is measured by PCA-based dispersion of shocks in sales, cash flows, and profits. Two-step SGMM addresses dynamics, endogeneity, and unobserved heterogeneity. Descriptive results show 64,86% of observations involve restructuring; strong restructuring is more frequent in asset retrenchment and debt restructuring than operating cost retrenchment. The results show that, when examined separately, asset retrenchment and operating cost retrenchment negatively affect ROA, whereas debt restructuring has a positive effect. When the three strategies are considered jointly, operating cost retrenchment and debt reduction dominate asset retrenchment in explaining ROA. Under low industry uncertainty, debt restructuring is more effective than the other strategies. The study contributes by measuring restructuring through continuous adjustment intensity, constructing an industry-year uncertainty index, and offering initial evidence for future research on the moderating role of industry uncertainty.
Keywords
Corporate Restructuring Strategies; Firm performance; Industry uncertainty; SGMM
Article Details
Field of Economic (JEL Codes)
D81 - Criteria for Decision-Making under Risk and Uncertainty - Information, Knowledge, and Uncertainty, G34 - Mergers • Acquisitions • Restructuring • Corporate Governance - Corporate Finance and Governance, L25 - Firm Performance: Size, Diversification, and Scope - Firm Objectives, Organization, and Behavior
References
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Arellano, M., & Bover, O. (1995). Another look at the instrumental variable estimation of error-components models. Journal Of Econometrics, 68(1), 29-51. https://doi.org/10.1016/0304-4076(94)01642-D
Baker, S. R., Bloom, N., & Davis, S. J. (2016). Measuring Economic Policy Uncertainty*. The Quarterly Journal of Economics, 131(4), 1593-1636. https://doi.org/10.1093/qje/qjw024
Banker, R. D., & Byzalov, D. (2014). Asymmetric Cost Behavior. Journal of Management Accounting Research, 26(2), 43-79. https://doi.org/10.2308/jmar-50846
Barney, J. (1991). Firm resources and sustained competitive advantage. JOURNAL OF MANAGEMENT, 17(1), 99-120. https://doi.org/10.1177/014920639101700108
Barney, J. B. (2001). Is the resource-based “view” a useful perspective for strategic management research? Yes. Academy of management Review, 26(1), 41-56. https://doi.org/10.5465/amr.2001.4011938
Baruník, J., Bevilacqua, M., & Faff, R. (2024). Dynamic industry uncertainty networks and the business cycle. Journal of Economic Dynamics Control, 159, 104793. https://doi.org/10.1016/j.jedc.2023.104793
Bloom, N. (2009). The Impact of Uncertainty Shocks. ECONOMETRICA, 77(3), 623-685. https://doi.org/10.3982/ECTA6248
Bloom, N. (2014). Fluctuations in Uncertainty. JOURNAL OF ECONOMIC PERSPECTIVES, 28(2), 153-176. https://doi.org/10.1257/jep.28.2.153
Bloom, N., Floetotto, M., Jaimovich, N., Saporta-Eksten, I., & Terry, S. J. (2018). Really Uncertain Business Cycles. ECONOMETRICA, 86(3), 1031-1065. https://doi.org/10.3982/ECTA10927
Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal Of Econometrics, 87(1), 115-143. https://doi.org/10.1016/S0304-4076(98)00009-8
Bowman, E. H., & Singh, H. (1993). Corporate restructuring: Reconfiguring the firm. STRATEGIC MANAGEMENT JOURNAL, 14(S1), 5-14. https://doi.org/10.1002/smj.4250140903
Campello, M., Kankanhalli, G., & Kim, H. (2024). Delayed creative destruction: How uncertainty shapes corporate assets. Journal of Financial Economics, 153, 103786. https://doi.org/10.1016/j.jfineco.2024.103786
Cascio, W. F., Chatrath, A., & Christie-David, R. A. (2021). Antecedents and Consequences of Employee and Asset Restructuring. Academy Of Management Journal, 64(2), 587-613. https://doi.org/10.5465/amj.2018.1013
Chang, C.-C., Chen, H.-Y., & Mon, K. T. (2024). Impact of economic policy uncertainty on the firm's working capital requirements. Pacific-Basin Finance Journal, 86. https://doi.org/10.1016/j.pacfin.2024.102432
Dan, D. V., & Chung, N. H. (2022). Bank profitability under uncertainty. The Quarterly Review of Economics and Finance, 83, 119-134. https://doi.org/10.1016/j.qref.2021.12.001
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Dess, G. G., & Beard, D. W. (1984). Dimensions of Organizational Task Environments. Administrative Science Quarterly, 29(1), 52-73. https://doi.org/10.2307/2393080
Donaldson, L. (2001). The contingency theory of organizations. Sage Publications India Pvt. Ltd. ISBN 0-7619-1573-7.
Drnevich, P. L., & West, J. (2023). Performance implications of technological uncertainty, age, and size for small businesses. Journal of Small Business Management, 61(4), 1806-1841. https://doi.org/10.1080/00472778.2020.1867733
Eugster, F., Kallunki, J., Kallunki, J.-P., & Nilsson, H. (2024). Managerial extraversion and corporate voluntary disclosure. Contemporary Accounting Research, 41(1), 95-125. https://doi.org/10.1111/1911-3846.12906
Faulkender, M., Flannery, M. J., Hankins, K. W., & Smith, J. M. (2012). Cash flows and leverage adjustments. Journal of Financial Economics, 103(3), 632-646. https://doi.org/10.1016/j.jfineco.2011.10.013
Flannery, M. J., & Rangan, K. P. (2006). Partial Adjustment Toward Target Capital Structures. Journal of Financial Economics, 79, 469-506. https://doi.org/10.1016/j.jfineco.2005.03.004
Forcadell, F. J., Romero‐Jordán, D., Sanchez‐Riofrio, A., & Guerras‐Martín, L. Á. (2024). The effect of restructuring internationalized companies on performance: Evidence from European firms. European Management Review, 22(3), 691-705. https://doi.org/10.1111/emre.12672
Girod, S. J. G., & Whittington, R. (2017). Reconfiguration, restructuring and firm performance: Dynamic capabilities and environmental dynamism. STRATEGIC MANAGEMENT JOURNAL, 38(5), 1121-1133. https://doi.org/10.1002/smj.2543
Goddard, J., Tavakoli, M., & Wilson, J. O. S. (2005). Determinants of profitability in European manufacturing and services: evidence from a dynamic panel model. Applied Financial Economics, 15(18), 1269-1282. https://doi.org/10.1080/09603100500387139
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2019). Multivariate data analysis. In: Cengage learning Hampshire
Hambrick, D. C., & Mason, P. A. (1984). Upper Echelons: The Organization as a Reflection of Its Top Managers. The Academy of Management Review, 9(2), 193-206. https://doi.org/10.2307/258434
Holder-Webb, L., Lopez, T. J., & Regier, P. R. (2005). The Performance Consequences of Operational Restructurings. Review of Quantitative Finance and Accounting, 25(4), 319-339. https://doi.org/10.1007/s11156-005-5458-7
Jenkins, D. G., & Quintana-Ascencio, P. (2020). A solution to minimum sample size for regressions. PLoS One, 15(2), e0229345. https://doi.org/10.1371/journal.pone.0229345
Jolliffe, I. T. (2002). Graphical representation of data using principal components. In Principal component analysis (pp. 64-91). Springer.
Koh, S., Durand, R. B., Dai, L., & Chang, M. (2015). Financial distress: Lifecycle and corporate restructuring. JOURNAL OF CORPORATE FINANCE, 33, 19-33. https://doi.org/10.1016/j.jcorpfin.2015.04.004
Koroma, S., & Bein, M. (2024). The Moderating Effect of Economic Policy Uncertainty on the Relationship Between Working Capital Management and Profitability: Evidence from UK Non-Financial Firms. 14(2), 21582440241242552. https://doi.org/10.1177/21582440241242552
Kumaraswamy, S., Ebrahim, R., & Nasser, H. (2019). Impact of Corporate Restructuring on the Financial Performance of Gulf Cooperation Council Firms. Polish Journal of Management Studies, 19(2), 262-272. https://doi.org/10.17512/pjms.2019.19.2.22
Leary, M. T., & Roberts, M. R. (2005). Do Firms Rebalance Their Capital Structures. JOURNAL OF FINANCE, 60, 2575-2619. https://doi.org/10.1111/j.1540-6261.2005.00811.x
Lim, D. S. K., Celly, N., Morse, E. A., & Rowe, W. G. (2013). Rethinking the effectiveness of asset and cost retrenchment: The contingency effects of a firm's rent creation mechanism. STRATEGIC MANAGEMENT JOURNAL, 34(1), 42-61. https://doi.org/https://doi.org/10.1002/smj.1996
Mansour, M., Al Amosh, H., Alodat, A. Y., Khatib, S. F. A., & Saleh, M. W. A. (2022). The Relationship between Corporate Governance Quality and Firm Performance: The Moderating Role of Capital Structure. Sustainability, 14(17). https://doi.org/10.3390/su141710525
Modigliani, F., & Miller, M. H. (1963). Corporate income taxes and the cost of capital: a correction. The American economic review, 53(3), 433-443. https://doi.org/https://www.jstor.org/stable/1809167
Morrow, J., Johnson, R. A., & Busenitz, L. W. (2004). The effects of cost and asset retrenchment on firm performance: The overlooked role of a firm’s competitive environment. JOURNAL OF MANAGEMENT, 30(2), 189-208. https://doi.org/10.1016/j.jm.2003.01.002
Nickell, S. (1981). Biases in Dynamic Models with Fixed Effects. ECONOMETRICA, 49(6), 1417-1426. https://doi.org/10.2307/1911408
Robbins, D. K., & Pearce, J. A. (1992). Turnaround: Retrenchment and recovery. STRATEGIC MANAGEMENT JOURNAL, 13(4), 287-309. https://doi.org/10.1002/smj.4250130404
Roodman, D. (2009). How to do xtabond2: An introduction to difference and system GMM in Stata. The stata journal, 9(1), 86-136. https://doi.org/10.1177/1536867X0900900106
Staw, B. M., Sandelands, L. E., & Dutton, J. E. (1981). Threat rigidity effects in organizational behavior: A multilevel analysis. Administrative Science Quarterly, Vol. 26, No. 4 (Dec., 1981),, 501-524. https://doi.org/10.2307/2392337
Sudarsanam, S., & Lai, J. (2001). Corporate financial distress and turnaround strategies: An empirical analysis. British Journal Of Management, 12(3), 183-199. https://doi.org/10.1111/1467-8551.00193
VCCI. (2025). Xu hướng tái cấu trúc doanh nghiệp tại Việt Nam. https://www.vcci.com.vn/news/xu-huong-tai-cau-truc-doanh-nghiep-tai-viet-nam, truy cập ngày 01/11/2025.
Weiss, D. (2010). Cost Behavior and Analysts’ Earnings Forecasts. The Accounting Review, 85(4), 1441-1471. https://doi.org/10.2308/accr.2010.85.4.1441 %J The Accounting Review
Wooldridge, J. M. (2010). Econometric analysis of cross section and panel data. MIT press
Anderson, M. C., Banker, R. D., & Janakiraman, S. N. (2003). Are Selling, General, and Administrative Costs "Sticky"? Journal Of Accounting Research, 41(1), 47-63. http://www.jstor.org/stable/3542244
Aprisma, R., & Sudaryati, E. (2020). Environmental uncertainty and firm performance: The moderating role of corporate governance. Jurnal Akuntansi, 24(2), 187-203. https://doi.org/10.24912/ja.v24i2.690
Arellano, M., & Bond, S. (1991). Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations. The review of economic studies, 58(2), 277-297. https://doi.org/10.2307/2297968
Arellano, M., & Bover, O. (1995). Another look at the instrumental variable estimation of error-components models. Journal Of Econometrics, 68(1), 29-51. https://doi.org/10.1016/0304-4076(94)01642-D
Baker, S. R., Bloom, N., & Davis, S. J. (2016). Measuring Economic Policy Uncertainty*. The Quarterly Journal of Economics, 131(4), 1593-1636. https://doi.org/10.1093/qje/qjw024
Banker, R. D., & Byzalov, D. (2014). Asymmetric Cost Behavior. Journal of Management Accounting Research, 26(2), 43-79. https://doi.org/10.2308/jmar-50846
Barney, J. (1991). Firm resources and sustained competitive advantage. JOURNAL OF MANAGEMENT, 17(1), 99-120. https://doi.org/10.1177/014920639101700108
Barney, J. B. (2001). Is the resource-based “view” a useful perspective for strategic management research? Yes. Academy of management Review, 26(1), 41-56. https://doi.org/10.5465/amr.2001.4011938
Baruník, J., Bevilacqua, M., & Faff, R. (2024). Dynamic industry uncertainty networks and the business cycle. Journal of Economic Dynamics Control, 159, 104793. https://doi.org/10.1016/j.jedc.2023.104793
Bloom, N. (2009). The Impact of Uncertainty Shocks. ECONOMETRICA, 77(3), 623-685. https://doi.org/10.3982/ECTA6248
Bloom, N. (2014). Fluctuations in Uncertainty. JOURNAL OF ECONOMIC PERSPECTIVES, 28(2), 153-176. https://doi.org/10.1257/jep.28.2.153
Bloom, N., Floetotto, M., Jaimovich, N., Saporta-Eksten, I., & Terry, S. J. (2018). Really Uncertain Business Cycles. ECONOMETRICA, 86(3), 1031-1065. https://doi.org/10.3982/ECTA10927
Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal Of Econometrics, 87(1), 115-143. https://doi.org/10.1016/S0304-4076(98)00009-8
Bowman, E. H., & Singh, H. (1993). Corporate restructuring: Reconfiguring the firm. STRATEGIC MANAGEMENT JOURNAL, 14(S1), 5-14. https://doi.org/10.1002/smj.4250140903
Campello, M., Kankanhalli, G., & Kim, H. (2024). Delayed creative destruction: How uncertainty shapes corporate assets. Journal of Financial Economics, 153, 103786. https://doi.org/10.1016/j.jfineco.2024.103786
Cascio, W. F., Chatrath, A., & Christie-David, R. A. (2021). Antecedents and Consequences of Employee and Asset Restructuring. Academy Of Management Journal, 64(2), 587-613. https://doi.org/10.5465/amj.2018.1013
Chang, C.-C., Chen, H.-Y., & Mon, K. T. (2024). Impact of economic policy uncertainty on the firm's working capital requirements. Pacific-Basin Finance Journal, 86. https://doi.org/10.1016/j.pacfin.2024.102432
Dan, D. V., & Chung, N. H. (2022). Bank profitability under uncertainty. The Quarterly Review of Economics and Finance, 83, 119-134. https://doi.org/10.1016/j.qref.2021.12.001
Denis, D. J., & Kruse, T. A. (2000). Managerial discipline and corporate restructuring following performance declines. Journal of Financial Economics, 55(3), 391-424. https://doi.org/10.1016/S0304-405X(99)00055-0
Dess, G. G., & Beard, D. W. (1984). Dimensions of Organizational Task Environments. Administrative Science Quarterly, 29(1), 52-73. https://doi.org/10.2307/2393080
Donaldson, L. (2001). The contingency theory of organizations. Sage Publications India Pvt. Ltd. ISBN 0-7619-1573-7.
Drnevich, P. L., & West, J. (2023). Performance implications of technological uncertainty, age, and size for small businesses. Journal of Small Business Management, 61(4), 1806-1841. https://doi.org/10.1080/00472778.2020.1867733
Eugster, F., Kallunki, J., Kallunki, J.-P., & Nilsson, H. (2024). Managerial extraversion and corporate voluntary disclosure. Contemporary Accounting Research, 41(1), 95-125. https://doi.org/10.1111/1911-3846.12906
Faulkender, M., Flannery, M. J., Hankins, K. W., & Smith, J. M. (2012). Cash flows and leverage adjustments. Journal of Financial Economics, 103(3), 632-646. https://doi.org/10.1016/j.jfineco.2011.10.013
Flannery, M. J., & Rangan, K. P. (2006). Partial Adjustment Toward Target Capital Structures. Journal of Financial Economics, 79, 469-506. https://doi.org/10.1016/j.jfineco.2005.03.004
Forcadell, F. J., Romero‐Jordán, D., Sanchez‐Riofrio, A., & Guerras‐Martín, L. Á. (2024). The effect of restructuring internationalized companies on performance: Evidence from European firms. European Management Review, 22(3), 691-705. https://doi.org/10.1111/emre.12672
Girod, S. J. G., & Whittington, R. (2017). Reconfiguration, restructuring and firm performance: Dynamic capabilities and environmental dynamism. STRATEGIC MANAGEMENT JOURNAL, 38(5), 1121-1133. https://doi.org/10.1002/smj.2543
Goddard, J., Tavakoli, M., & Wilson, J. O. S. (2005). Determinants of profitability in European manufacturing and services: evidence from a dynamic panel model. Applied Financial Economics, 15(18), 1269-1282. https://doi.org/10.1080/09603100500387139
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2019). Multivariate data analysis. In: Cengage learning Hampshire
Hambrick, D. C., & Mason, P. A. (1984). Upper Echelons: The Organization as a Reflection of Its Top Managers. The Academy of Management Review, 9(2), 193-206. https://doi.org/10.2307/258434
Holder-Webb, L., Lopez, T. J., & Regier, P. R. (2005). The Performance Consequences of Operational Restructurings. Review of Quantitative Finance and Accounting, 25(4), 319-339. https://doi.org/10.1007/s11156-005-5458-7
Jenkins, D. G., & Quintana-Ascencio, P. (2020). A solution to minimum sample size for regressions. PLoS One, 15(2), e0229345. https://doi.org/10.1371/journal.pone.0229345
Jolliffe, I. T. (2002). Graphical representation of data using principal components. In Principal component analysis (pp. 64-91). Springer.
Koh, S., Durand, R. B., Dai, L., & Chang, M. (2015). Financial distress: Lifecycle and corporate restructuring. JOURNAL OF CORPORATE FINANCE, 33, 19-33. https://doi.org/10.1016/j.jcorpfin.2015.04.004
Koroma, S., & Bein, M. (2024). The Moderating Effect of Economic Policy Uncertainty on the Relationship Between Working Capital Management and Profitability: Evidence from UK Non-Financial Firms. 14(2), 21582440241242552. https://doi.org/10.1177/21582440241242552
Kumaraswamy, S., Ebrahim, R., & Nasser, H. (2019). Impact of Corporate Restructuring on the Financial Performance of Gulf Cooperation Council Firms. Polish Journal of Management Studies, 19(2), 262-272. https://doi.org/10.17512/pjms.2019.19.2.22
Leary, M. T., & Roberts, M. R. (2005). Do Firms Rebalance Their Capital Structures. JOURNAL OF FINANCE, 60, 2575-2619. https://doi.org/10.1111/j.1540-6261.2005.00811.x
Lim, D. S. K., Celly, N., Morse, E. A., & Rowe, W. G. (2013). Rethinking the effectiveness of asset and cost retrenchment: The contingency effects of a firm's rent creation mechanism. STRATEGIC MANAGEMENT JOURNAL, 34(1), 42-61. https://doi.org/https://doi.org/10.1002/smj.1996
Mansour, M., Al Amosh, H., Alodat, A. Y., Khatib, S. F. A., & Saleh, M. W. A. (2022). The Relationship between Corporate Governance Quality and Firm Performance: The Moderating Role of Capital Structure. Sustainability, 14(17). https://doi.org/10.3390/su141710525
Modigliani, F., & Miller, M. H. (1963). Corporate income taxes and the cost of capital: a correction. The American economic review, 53(3), 433-443. https://doi.org/https://www.jstor.org/stable/1809167
Morrow, J., Johnson, R. A., & Busenitz, L. W. (2004). The effects of cost and asset retrenchment on firm performance: The overlooked role of a firm’s competitive environment. JOURNAL OF MANAGEMENT, 30(2), 189-208. https://doi.org/10.1016/j.jm.2003.01.002
Nickell, S. (1981). Biases in Dynamic Models with Fixed Effects. ECONOMETRICA, 49(6), 1417-1426. https://doi.org/10.2307/1911408
Robbins, D. K., & Pearce, J. A. (1992). Turnaround: Retrenchment and recovery. STRATEGIC MANAGEMENT JOURNAL, 13(4), 287-309. https://doi.org/10.1002/smj.4250130404
Roodman, D. (2009). How to do xtabond2: An introduction to difference and system GMM in Stata. The stata journal, 9(1), 86-136. https://doi.org/10.1177/1536867X0900900106
Staw, B. M., Sandelands, L. E., & Dutton, J. E. (1981). Threat rigidity effects in organizational behavior: A multilevel analysis. Administrative Science Quarterly, Vol. 26, No. 4 (Dec., 1981),, 501-524. https://doi.org/10.2307/2392337
Sudarsanam, S., & Lai, J. (2001). Corporate financial distress and turnaround strategies: An empirical analysis. British Journal Of Management, 12(3), 183-199. https://doi.org/10.1111/1467-8551.00193
VCCI. (2025). Xu hướng tái cấu trúc doanh nghiệp tại Việt Nam. https://www.vcci.com.vn/news/xu-huong-tai-cau-truc-doanh-nghiep-tai-viet-nam, truy cập ngày 01/11/2025.
Weiss, D. (2010). Cost Behavior and Analysts’ Earnings Forecasts. The Accounting Review, 85(4), 1441-1471. https://doi.org/10.2308/accr.2010.85.4.1441 %J The Accounting Review
Wooldridge, J. M. (2010). Econometric analysis of cross section and panel data. MIT press
How to Cite
Phan Thi, H. (2026). The Effects of Corporate Restructuring Strategies and Industry Uncertainty on Firm Performance: Evidence from Listed Non-Financial Firms in Vietnam. Journal of Finance - Marketing Research, 4(4ene). https://doi.org/10.52932/jfmr.v4i4ene.1487