Do Press  Announcements Of Corporate Downsizing Predict Actual Downsizing?

Wei Huang; Donna L. Paul

Makale detayları

Do Press Announcements Of Corporate Downsizing Predict Actual Downsizing?

Yazarlar:

Wei Huang | Donna L. Paul

Yayıncı:

PressAcademia

Dergi:

Journal of Business Economics and Finance 2013 Vol.2 Issue 1, pp.13-35

Belge Tipi:

Makale

Yayın Tarihi:

2/2013

Belge Dili:

Türkçe

Document ID (Org No.):

2000738209

Sıklık:

Üç Aylık

eISSN:

2146-7943

Özet:

 

We investigate the determinants of actual downsizing following corporate press announcements of downsizing and find that some announcements are followed by lower growth rates in assets and employees and some are not. Our analysis indicates that the downsizing announcement sometimes implies net downsizing and sometimes implies strategic re-alignment of assets. Firms with increased asset and employee growth rates have higher market to book, a proxy for investment opportunities. In contrast, ex-post decreases in growth occur for firms with lower operating performance. Further we find that during a normal economy, board independence is also associated with lower ex-post growth, but not during a period of economic decline. This suggests a relatively more board involvement in asset restructuring during normal or boom times. The results provide new evidence on the nature of information contained in announcements of asset downsizing and employee layoffs.

Makale detayları

Do Press Announcements Of Corporate Downsizing Predict Actual Downsizing?

Yazarlar: Wei Huang | Donna L. Paul

Yayıncı: PressAcademia

Dergi: Journal of Business Economics and Finance 2013 Vol.2 Issue 1, pp.13-35

Belge Tipi: Makale

Yayın Tarihi: 2/2013

Belge Dili: Türkçe

Document ID (Org No.): 2000738209

Sıklık: Üç Aylık

eISSN: 2146-7943

Sayı

Yazarlar:

Wei Huang | Donna L. Paul

Yayıncı:

PressAcademia

Dergi:

Journal of Business Economics and Finance 2013 Vol.2 Issue 1, pp.13-35

Belge Tipi:

Makale

Yayın Tarihi:

2/2013

Belge Dili:

Türkçe

Document ID (Org No.):

2000738209

Sıklık:

Üç Aylık

eISSN:

2146-7943