Downsizing implementation and financial performance

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Show simple item record Muñoz-Bullón, Fernando Sánchez-Bueno, María José
dc.contributor.editor Universidad Carlos III de Madrid. Departamento de Economía de la Empresa 2008-07-03T10:37:55Z 2008-07-03T10:37:55Z 2008-06
dc.description.abstract In the present study we explore the relationship between downsizing decisions and corporate financial performance after top management has decided to downsize. Our focus is on the financial consequences arising from the amount of downsizing and the use of disengagement incentives. For this purpose, we use a sample of downsizing announcements in the Spanish press from 1995 up to 2001. Although the results show that the amount of downsizing is not significantly related to post-downsizing profitability, the evidence provided supports the finding that the use of disengagement incentives (which motivate workers to leave the organization) is negatively related to firm performance. Our analysis helps to understand the role that strategic downsizing decisions play in explaining observed variance in the performance of downsized firms. Thus, it advances scholarly organizational research by reinforcing the concept that corporate performance is not only contingent on strategies, but also influenced by the means through which these strategies are implemented.
dc.format.mimetype application/pdf
dc.format.mimetype text/plain
dc.format.mimetype application/octet-stream
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dc.language.iso eng
dc.language.iso eng
dc.relation.ispartofseries UC3M Working papers. Business Economics
dc.relation.ispartofseries 08-06
dc.rights Atribución-NoComercial-SinDerivadas 3.0 España
dc.subject.other Downsizing
dc.subject.other Disengagement incentives
dc.subject.other Corporate performance
dc.subject.other Spanish labour market
dc.title Downsizing implementation and financial performance
dc.type workingPaper
dc.subject.jel J21
dc.subject.jel J65
dc.subject.eciencia Empresa
dc.rights.accessRights openAccess
dc.identifier.repec wb082906
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