Capital market behavior and operational announcements of layoffs, operation closings, and pay cuts

Ji-chai Lin; Michael S. Rozeff

doi:10.1007/BF02408411

Capital market behavior and operational announcements of layoffs, operation closings, and pay cuts

Ji-chai Lin, Michael S. Rozeff

Research output: Journal article publication › Journal article › Academic research › peer-review

31 Citations (Scopus)

Abstract

This article examines the relation between stock returns and a set of operating decisions: layoffs, operation closings, and pay cuts. We find evidence that cost-cutting measures occur after significant stock price declines. Announcements of layoffs and temporary operation closings are associated with negative returns, while permanent operation closings do not have significant announcement effects.

Original language	English
Pages (from-to)	29-45
Number of pages	17
Journal	Review of Quantitative Finance and Accounting
Volume	3
Issue number	1
DOIs	https://doi.org/10.1007/BF02408411
Publication status	Published - 1 Mar 1993
Externally published	Yes

Keywords

cost-cutting
operation closings
shareholder wealth

ASJC Scopus subject areas

Accounting
General Business,Management and Accounting
Finance

More information

10.1007/BF02408411

Cite this

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Capital market behavior and operational announcements of layoffs, operation closings, and pay cuts

Abstract

Keywords

ASJC Scopus subject areas

More information

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