LONG TERM STOCK RETURN PERFORMANCE OF LAYOFF FIRMS

TeWhan Hahn, Auburn University, Montgomery, Alabama, USA
Fred Jacobs, Georgia State University, Atlanta, Georgia, USA

Published in

EUROPEAN JOURNAL OF BUSINESS RESEARCH
Volume 14, Issue 1, p110-113, March 2014

ABSTRACT

This study investigates the long term stock return performance of firms that laid-off employees due to low demand or restructuring. It is shown that layoff firms do not underperform after the layoff period, while they statistically significantly underperformed before the layoff. This result holds regardless of measures of return performance used: raw returns, market adjusted returns and Fama-French three factor model to measure abnormal performance.

Keywords

Fama-French Three Factor Model, Layoff, Long Term Performance


About the Article

Abstract, Keywords, Page Numbers, etc

About the Journal

Managing Editors, Indexing, Best Practices

About The Publisher

History, Partners, Conferences

Access the Full Article

Log-in to IABE to access full article

Search IABE

Search IABE's articles by Title, Author, or keyword

Contact Us

Send a message to IABE