Changing Stock Market Response to Announcement of Job Loss: Evidence from 1970-1997

Henry Farber and Kevin Hallock
Additional contact information
Henry Farber: Princeton University

No 793, Working Papers from Princeton University, Department of Economics, Industrial Relations Section.

Abstract: We report preliminary results of an analysis of the reaction of stock prices to announcements of reductions in force (RIFs) using a large sample of such announcements during the 1970-1997 period collected from the Wall Street Journal index. We find some evidence that the stock market reaction to the announcement of RIFs has become less negative over this period. While a complete understanding of the underlying causes of this finding awaits further research, one possible interpretation is that, over the last three decades, RIF s designed to improve deficiency have become more common relative to RIFs designed to cope with reductions in product demand.

Keywords: job loss; layoffs; downsizing (search for similar items in EconPapers)
JEL-codes: N66 (search for similar items in EconPapers)
Date: 1999-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://dataspace.princeton.edu/bitstream/88435/dsp01j6731377t/1/414.pdf

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: https://EconPapers.repec.org/RePEc:pri:indrel:414

Access Statistics for this paper

More papers in Working Papers from Princeton University, Department of Economics, Industrial Relations Section. Contact information at EDIRC.
Bibliographic data for series maintained by Bobray Bordelon ().