Muñoz-Bullón, FernandoSánchez-Bueno, María JoséUniversidad Carlos III de Madrid. Departamento de Economía de la Empresa2008-06-192008-06-192008-06https://hdl.handle.net/10016/2720The objective of this study is to examine the effect of downsizing on corporate performance, considering a sample of manufacturing firms drawn from the Spanish Survey of Business Strategies during the 1993- 2005 period. No significant differences in post-downsizing performance arise between companies which downsize and those that do not. Likewise, we find that substantial workforce reductions through collective dismissals do not either lead to improved performance levels. Downsizing, therefore, may not be a way for managers to increase performance, particularly in a context like the Spanish one, where the labour market is characterized by a high protection of employees’ rights and substantial contract termination costs.application/pdfengAtribución-NoComercial-SinDerivadas 3.0 EspañaDownsizingCorporate performanceSpanish labour marketworking paperJ21J65Empresaopen accesswb083007