RT Generic
T1 Downsizing implementation and financial performance
A1 Muñoz-Bullón, Fernando
A1 Sánchez-Bueno, María José
A2 Universidad Carlos III de Madrid. Departamento de Economía de la Empresa, 
AB In the present study we explore the relationship between downsizing decisions and corporate financialperformance after top management has decided to downsize. Our focus is on the financial consequencesarising from the amount of downsizing and the use of disengagement incentives. For this purpose, we usea sample of downsizing announcements in the Spanish press from 1995 up to 2001. Although the resultsshow that the amount of downsizing is not significantly related to post-downsizing profitability, theevidence provided supports the finding that the use of disengagement incentives (which motivate workersto leave the organization) is negatively related to firm performance. Our analysis helps to understand therole that strategic downsizing decisions play in explaining observed variance in the performance ofdownsized firms. Thus, it advances scholarly organizational research by reinforcing the concept thatcorporate performance is not only contingent on strategies, but also influenced by the means throughwhich these strategies are implemented.
YR 2008
FD 2008-06
LK https://hdl.handle.net/10016/2719
UL https://hdl.handle.net/10016/2719
LA eng
LA eng
DS e-Archivo
RD 27 jul. 2024