I'm not sure what Michael expected, but surely it would be a little too pat if we could say "big layoffs lead to stock price rises, what bastards those capitalists are, to be sure". In general, the most common reason for having big layoffs is that your company is fucked, which is often correlated with poor stock returns.
Michael, what does the literature say about layoffs on a broader basis? best dd -----Original Message----- From: PEN-L list [mailto:[EMAIL PROTECTED] Behalf Of Doug Henwood Sent: 23 May 2007 22:08 To: [email protected] Subject: Re: research help, please Belatedly - the data comes from 1990-94, and shows a significant negative stock price reaction to layoff announcements, which is highly counterintuitive, and not what Michael expected. Doug On May 21, 2007, at 6:49 PM, Daniel Davies wrote: > this one? > > http://links.jstor.org/sici?sici=0143-2095(199712)18%3A11%3C879% > 3AACAOLA%3E2 > .0.CO%3B2-N > > -----Original Message----- > From: PEN-L list [mailto:[EMAIL PROTECTED] Behalf Of Michael > Perelman > Sent: 21 May 2007 23:10 > To: [email protected] > Subject: research help, please > > > I recently saw a study relating stock price increases and layoff > announcements. I > lost the reference. Any help would be appreciated. > > > -- > Michael Perelman > Economics Department > California State University > Chico, CA 95929 > > Tel. 530-898-5321 > E-Mail michael at ecst.csuchico.edu > michaelperelman.wordpress.com
