Kursgewinne durch Entlassungspläne? Erste Ergebnisse aus Deutschland

Werner Neus and Andreas Walter

Perspektiven der Wirtschaftspolitik, 2009, vol. 10, issue 1, pages 1-20

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.

Date: 2009

Downloads: (external link)
http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-2516.2008.00291.x link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:bla:perwir:v:10:y:2009:i:1:p:1-20

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1465-6493

Access Statistics for this article

Perspektiven der Wirtschaftspolitik is edited by Lars P. Feld, Jürgen von Hagen, Bernd Rudolph and Achim Wambach

More articles in Perspektiven der Wirtschaftspolitik from Blackwell Publishing
Series data maintained by Christopher F. Baum ().