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Restructuring is a common organizational practice. Prior research has frequently studied the relationship between restructuring and firm performance. However, these studies have produced mixed findings. These mixed findings suggest that additional theorizing is needed to understand the consequences of restructuring and the conditions under which restructuring is most likely to be successful. Contributing to this literature, we integrate perspectives on organizational change with the resource-based view to examine the likelihood that organizational restructuring will lead to negative consequences, and ultimately to bankruptcy declarations. Furthermore, we hypothesize that valuable resources mitigate disruptions that arise from restructuring and reduce the likelihood of bankruptcy. We investigate our hypotheses using a sample of firms that engaged in organizational restructuring and matched to a set of non …