Literature Review Women on boards and in TMTS and firm performance 131 layoffs in relation to the total sample during the fi nancial crisis period can be observed in the sectors financial services services as well as mining and telecoms and utilities Firms from these industries appear to be the most adversely affected by the crisis Hypothesis 5 Market reaction to large bank layoff announce ments will be negative and increase with layoff size 5 4 Data I build my sample from the lists of the largest US and European banks provided by BankScope Du ring my investigation period 2004 to 2014 the banking sector saw a large number of insolvencies mergers and acquisitions In order to capture all banks of relevance during the investigation peri od I search for the largest banks at two different points in time December 31 2004 and December 31 2014 I restrict my sample to banks with total assets of no less than 100 billion US dollar at the end of 2004 and or at the end of 2014 I search Lexis Nexis and the Reuters database for layoff announcements by the selected stock listed banks from January 1 2004 to December 31 2014 The initial sample consists of 495 announcements by 20 US banks and 42 European banks I collect stock data from Datastream I exclude the two largest Russian banks as the search does not yield reliable data This reduces the number observations to 491 Controlling for confounding events in the 5 5 event window around the announcement date such as simultaneously reported losses recent poor financial performance a profit warning or a merger announcement further reduces the number to 301 announcements I further exclude announcements of less than 100 redundancies as I consider this information as being irrelevant to firm financial performance and thus also to stock prices In case the number of redundancies is given in form of a range I use the figure at the upper end of the range Given that only the first announcement on a planned workforce reduction conveys new in formation to the market Hallock 1998 Hillier et al 2007 follow up messages are thus not taken into consideration After applying these additional filters the sample comprises 210 layoff announ cements by 18 US banks and 31 European banks The 49 banks in my sample announced a total of 554 158 redundancies during the investiga tion period 2004 to 2014 US banks account for 52 6 percent with 291 531 planned layoffs Banks headquartered in Europe announced 262 627 layoffs In terms of the number of employees to be laid off I observe two peaks namely in 2007 2008 the years of the global financial crisis and in 2013 during the European sovereign debt crisis This result is in line with previous findings showing that the frequency of redundancies is closely associated with the general business cycle Farber Hallock 2009 Fraunhoffer et al 2014 Marshall et al 2012 The banks under review announced an average of 2 800 redundancies This corresponds to almost 3 percent of their total workforce The following table 5 2 shows the tem poral distribution of announcements on planned staff cuts during the investigation period Layoffs and shareholder wealth

Vorschau DIRK-Forschungsreihe Band 21 Workforce diversity and personal policies Seite 131
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