NDLI: Stock market reactions to layoff announcements: the impact of reasons, extent, and social responsibility

Content Provider	Springer Nature Link
Author	Knauer, Thorsten Lachmann, Maik
Copyright Year	2011
Abstract	Im vorliegenden Beitrag werden 136 Ankündigungen von Personalabbauprogrammen börsennotierter deutscher Unternehmen zwischen 2000 und 2009 im Hinblick auf deren Einfluss auf den Shareholder Value mittels einer Ereignisstudie analysiert. Die Ergebnisse zeigen eine geringe durchschnittliche Reaktion des Aktienkurses, wobei jedoch die Varianz der Kapitalmarktreaktionen stark ausgeprägt ist. Zur Erklärung dieser Varianz werden als zentrale Merkmale von Personalabbauprogrammen die Motive für den Stellenabbau, der Umfang der Personalreduzierung sowie die Freiwilligkeit der Umsetzung herangezogen. Die empirische Analyse zeigt für Motive, welche als Reaktion auf eine unzureichende Vergangenheitsentwicklung aufgefasst werden, einen negativen Effekt auf den Shareholder Value. Dagegen ist für Personalabbauprogramme, die durch effizienzsteigernde Motive begründet werden (Kostensenkungsbestrebungen), ein positiver Einfluss zu beobachten. Der Umfang der Personalreduzierung wirkt sich tendenziell negativ auf den Unternehmenswert aus. Personalabbauprogramme, die den Mitarbeitern die Entscheidung überlassen, das Unternehmen freiwillig zu verlassen, beeinflussen den Shareholder Value dagegen deutlich positiv. Darüber hinaus werden ein positiver Zusammenhang zur Humankapitalintensität sowie ein negativer Zusammenhang für die Unternehmen des verarbeitenden Gewerbes und den Verschuldungsgrad beobachtet. Der Erklärungsgehalt des Regressionsmodells übertrifft denjenigen angloamerikanischer Studien.This study examines the effects of layoff announcements on the market value of German listed companies. Analyzing 136 announcements being published between 2000 and 2009, the results show marginal abnormal returns but high variance indicating that the market reaction might depend on specific characteristics. As potential determinants we particularly discuss the reasons for layoff, the size of layoff and the voluntariness of layoff. We find that reactive reasons like plant closures have a negative impact on shareholder value whilst active reasons like cost improvements enhance shareholder value. The size of layoff tends to induce negative effects. A voluntary layoff announcement however increases the value of a firm. Furthermore, we find a positive relationship between abnormal returns and human capital intensity and a negative one with both the manufacturing industry membership and financial leverage. In addition, the regression model extends prior literature since its coefficient of determination exceeds those in Anglo-American studies.
Starting Page	1109
Ending Page	1140
Page Count	32
File Format	PDF
ISSN	00442372
Journal	Zeitschrift für Betriebswirtschaft
Volume Number	81
Issue Number	10
e-ISSN	18618928
Language	English
Publisher	SP Gabler Verlag
Publisher Date	2011-09-15
Publisher Place	Wiesbaden
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Layoff announcement Staff reduction Shareholder value Event study Human Resource Management Organization/Planning Business/Management Science Management/Business for Professionals Accounting/Auditing Production/Logistics/Supply Chain
Content Type	Text
Resource Type	Article
Subject	Business and International Management Economics and Econometrics

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

The impact of investor sentiment on the German stock market

Auditing, consulting, and audit market concentration

The Influence of New Product Preannouncements on Shareholder Value: An Empirical Analysis

Ruth Stock-Homburg/Birgitta Wolff (Hrsg.): Handbuch „Strategisches Personalmanagement“

The impact of interlocking directorates on shareholder value creation : New evidence from board director networks in Germany

The net asset value and stock prices of European real estate companies : Explaining net asset value spreads by an empirical model

Decision-usefulness of ideal cost- and ideal value accounting for valuation and stewardship

Value-oriented simulation to support manufacturing system design in steel production

Fraud characteristics and their effects on shareholder wealth

Stock market reactions to layoff announcements: the impact of reasons, extent, and social responsibility

Similar Documents

The impact of investor sentiment on the German stock market

Auditing, consulting, and audit market concentration

The Influence of New Product Preannouncements on Shareholder Value: An Empirical Analysis

Ruth Stock-Homburg/Birgitta Wolff (Hrsg.): Handbuch „Strategisches Personalmanagement“

The impact of interlocking directorates on shareholder value creation : New evidence from board director networks in Germany

The net asset value and stock prices of European real estate companies : Explaining net asset value spreads by an empirical model

Decision-usefulness of ideal cost- and ideal value accounting for valuation and stewardship

Value-oriented simulation to support manufacturing system design in steel production

Fraud characteristics and their effects on shareholder wealth

Stock market reactions to layoff announcements: the impact of reasons, extent, and social responsibility