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Kursgewinne durch Entlassungspläne? Erste Ergebnisse aus Deutschland

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  • Werner Neus
  • Andreas Walter
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    Abstract

    Employing traditional event study methodology we examine the market reaction to layoff announcements of firms listed on the German stock market. We contribute to the international literature in this field with two major results. First, unlike anecdotal and similar to international evidence we report a negative and significant abnormal rate of return of - 0.37 percent on the announcement day. Further, we find that the reason for the layoff announcement plays a decisive role in the revaluation process. On the one hand, stocks of firms that announce layoffs as a reaction to declining market conditions are associated with a more intense negative market response. On the other hand, even stocks of firms that intend to enhance their profitability by means of layoffs do not show a significant positive reaction. Copyright 2009 die Autoren Journal compilation 2009, Verein für Socialpolitik und Blackwell Publishing Ltd.

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    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-2516.2008.00291.x
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    Bibliographic Info

    Article provided by Verein für Socialpolitik in its journal Perspektiven der Wirtschaftspolitik.

    Volume (Year): 10 (2009)
    Issue (Month): 1 (02)
    Pages: 1-20

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    Handle: RePEc:bla:perwir:v:10:y:2009:i:1:p:1-20

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    1. Brown, Stephen J. & Warner, Jerold B., 1985. "Using daily stock returns : The case of event studies," Journal of Financial Economics, Elsevier, vol. 14(1), pages 3-31, March.
    2. A. Craig MacKinlay, 1997. "Event Studies in Economics and Finance," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 13-39, March.
    3. David Hillier & Andrew Marshall & Patrick McColgan & Samwel Werema, 2007. "Employee Layoffs, Shareholder Wealth and Firm Performance: Evidence from the UK," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 34(3-4), pages 467-494.
    4. Brown, Stephen J. & Warner, Jerold B., 1980. "Measuring security price performance," Journal of Financial Economics, Elsevier, vol. 8(3), pages 205-258, September.
    5. Armitage, Seth, 1995. " Event Study Methods and Evidence on Their Performance," Journal of Economic Surveys, Wiley Blackwell, vol. 9(1), pages 25-52, March.
    6. Syed Zulfiqar Ali Shah, 2007. ""Discussion of" Employee Layoffs, Shareholder Wealth and Firm Performance: Evidence from the UK," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 34(3-4), pages 495-504.
    7. Hallock, Kevin F, 1998. "Layoffs, Top Executive Pay, and Firm Performance," American Economic Review, American Economic Association, vol. 88(4), pages 711-23, September.
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