Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/29494
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dc.contributor.authorChen, Pen_US
dc.contributor.authorMehrotra, Ven_US
dc.contributor.authorSivakumar, Ren_US
dc.contributor.authorYu, WWen_US
dc.date.accessioned2015-08-28T04:31:53Z-
dc.date.available2015-08-28T04:31:53Z-
dc.date.issued2001-
dc.identifier.citationJournal of empirical Finance, 2001, v. 8, no. 2, p. 171-199en_US
dc.identifier.issn0927-5398-
dc.identifier.urihttp://hdl.handle.net/10397/29494-
dc.description.abstractWe examine the relation between layoffs and stockholders' wealth, and corporate performance subsequent to layoffs. We find that layoffs are preceded by a period of poor stock market and earnings performance, and are followed by significant improvements in both. On average, layoff announcements are associated with a significantly negative stock market response, with the lowest returns associated with layoffs attributed to declining demand. We do not find any evidence that layoff announcements are followed by reduced total employment in the subsequent 3 years; however, we find evidence of improving profit margins and improved labor productivity following layoffs. We find no evidence that the eventual turnaround in firm performance following layoff decisions is due to mean reversion in accounting earnings. Finally, we find that layoff firms tend to increase corporate focus. Our findings support the view that a layoff decision is a rational response to ensure corporate survival.en_US
dc.description.sponsorshipSchool of Accounting and Financeen_US
dc.language.isoenen_US
dc.publisherElsevieren_US
dc.relation.ispartofJournal of empirical financeen_US
dc.subjectLayoffsen_US
dc.subjectCorporate restructuringen_US
dc.subjectWork force reductionen_US
dc.titleLayoffs, shareholders' wealth, and corporate performanceen_US
dc.typeJournal/Magazine Articleen_US
dc.identifier.spage171-
dc.identifier.epage199-
dc.identifier.volume8-
dc.identifier.issue2-
dc.identifier.doi10.1016/S0927-5398(01)00024-X-
dc.identifier.rosgroupidr04588-
dc.description.ros2000-2001 > Academic research: refereed > Publication in refereed journal-
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