Doug is right that the response is negative. Nobody can figure out when layoffs are "proactive" [the word the economists use] or a signal of desparation.
The data seem to say that the negative response is less negative not -- perhaps because of more desparation. On Thu, May 24, 2007 at 12:56:53AM +0100, Daniel Davies wrote: > 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 -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu michaelperelman.wordpress.com
