THE IMPACT OF CORPORATE RESTRUCTURING ON FINANCIAL PERFORMANCE (A CASE STUDY OF SELECTED SMES IN NIGERIA)

Shalom Okpunyi IDIKWU; Taiwo Adewale MURITALA; Oluwaseun Wemimo MICHAEL-OMOBHUDE; Abayomi Samuel TAIWO

doi:10.29121/ShodhPrabandhan.v3.i3.2026.151

Authors

Shalom Okpunyi IDIKWU Department of Business Administration, Nile University of Nigeria Author
Taiwo Adewale MURITALA Department of Business Administration, Nile University of Nigeria Author
Oluwaseun Wemimo MICHAEL-OMOBHUDE Department of Business Administration, Nile University of Nigeria Author
Abayomi Samuel TAIWO Department of Economics, Tai Solarin University of Education, Ogun State, Nigeria Author

DOI:

https://doi.org/10.29121/ShodhPrabandhan.v3.i3.2026.151

Keywords:

Corporate Restructuring, Mergers and Acquisitions, Management Changes, Financial Performance

Abstract

This study examines the impact of corporate restructuring on the financial performance of selected Small and Medium Enterprises (SMEs) in Nigeria. It focuses on three strategic approaches—Mergers and Acquisitions (M&A), Rebranding (RB), and Management Change (MC)—and their influence on profitability, measured by profit margins. Adopting a quantitative research design, data were collected through structured questionnaires administered to executives of selected SMEs and analyzed using SPSS. The results show that SME executives generally perceive restructuring strategies as effective, with Rebranding rated highest (Mean = 3.76), followed by M&A (Mean = 3.52) and Management Change (Mean = 3.49). Reliability analysis confirmed strong internal consistency (Cronbach’s Alpha > 0.7). Correlation analysis revealed significant positive relationships between all three strategies and profit margins, with Rebranding showing the strongest correlation (r = 0.58), followed by M&A (r = 0.46) and Management Change (r = 0.41). Regression analysis further demonstrated that the model accounts for 45.3% of the variance in profit margin (F = 57.72, p < 0.001), with Rebranding having the most substantial effect (β = 0.336, p < 0.001). M&A (β = 0.211) and Management Change (β = 0.194) also had statistically significant impacts. The study concludes that well-executed restructuring strategies—particularly rebranding—can enhance SME profitability. It recommends that SME owners consider these strategies to improve competitiveness and ensure long-term sustainability.

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