Downsizing and Profitability: An Empirical Study of Portuguese Firms in 1993¡V2005

Tania Marques, Isabel Suarez-Gonzalez, Pedro Cruz and Manuel Ferreira ()
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Tania Marques: School of Technology and Management, Management for Sustainability Research Center, Polytechnic Institute of Leiria, Portugal
Pedro Cruz: ISG Business School, CIGEST/ID+ Research Units, Lisbon/Aveiro, Portugal

International Journal of Business and Economics, 2011, vol. 10, issue 1, 13-26

Abstract: Although firms may resort to downsizing strategies to improve financial performance, the actual outcome of downsizing is inconclusive. Testing a sample of 1,357 Portuguese firms, we conclude that firms that downsize tend to continue to underperform compared to those that do not downsize.

Keywords: downsizing effects; downsizing performance; financial performance; Portugal (search for similar items in EconPapers)
JEL-codes: G34 M19 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (2)

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