Persistent Link:
http://hdl.handle.net/10150/278232
Title:
The effects of layoff announcements on common stock prices
Author:
Thompson, Troy Creighton, 1963-
Issue Date:
1992
Publisher:
The University of Arizona.
Rights:
Copyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.
Abstract:
This event study of the stock market analyzes the effect of layoff announcements on common stock prices. The analysis finds that, on average, stock prices have a negative reaction to layoff announcements. However, for the month following the announcement, stocks have positive abnormal returns in effect equalling the negative abnormal returns surrounding the event day. The study also addresses the question of whether the business cycle influences the reaction in the stock market to layoff announcements. The findings suggest that there is a business cycle influence. The layoff announcements are also categorized and analyzed by several other criteria. First announcements are found to carry much more negative information than additional announcements. Plant closing layoff announcements report a more negative reaction. Different industry types are found to react uniquely to the layoff announcement and the stated reason by management for the layoff has little influence on the stock market reaction.
Type:
text; Thesis-Reproduction (electronic)
Keywords:
Economics, Finance.
Degree Name:
M.S.
Degree Level:
masters
Degree Program:
Graduate College
Degree Grantor:
University of Arizona
Advisor:
Atkins, Allen B.

Full metadata record

DC FieldValue Language
dc.language.isoen_USen_US
dc.titleThe effects of layoff announcements on common stock pricesen_US
dc.creatorThompson, Troy Creighton, 1963-en_US
dc.contributor.authorThompson, Troy Creighton, 1963-en_US
dc.date.issued1992en_US
dc.publisherThe University of Arizona.en_US
dc.rightsCopyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.en_US
dc.description.abstractThis event study of the stock market analyzes the effect of layoff announcements on common stock prices. The analysis finds that, on average, stock prices have a negative reaction to layoff announcements. However, for the month following the announcement, stocks have positive abnormal returns in effect equalling the negative abnormal returns surrounding the event day. The study also addresses the question of whether the business cycle influences the reaction in the stock market to layoff announcements. The findings suggest that there is a business cycle influence. The layoff announcements are also categorized and analyzed by several other criteria. First announcements are found to carry much more negative information than additional announcements. Plant closing layoff announcements report a more negative reaction. Different industry types are found to react uniquely to the layoff announcement and the stated reason by management for the layoff has little influence on the stock market reaction.en_US
dc.typetexten_US
dc.typeThesis-Reproduction (electronic)en_US
dc.subjectEconomics, Finance.en_US
thesis.degree.nameM.S.en_US
thesis.degree.levelmastersen_US
thesis.degree.disciplineGraduate Collegeen_US
thesis.degree.grantorUniversity of Arizonaen_US
dc.contributor.advisorAtkins, Allen B.en_US
dc.identifier.proquest1350939en_US
dc.identifier.bibrecord.b26422748en_US
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