Literature Review Women on boards and in TMTS and firm performance 141 The findings for the pre crisis and the crisis period are in accordance with the observed variations in the reasons for the layoffs over time In pre crisis times proactive strategies aiming at achieving cost reduction or efficiency increases clearly dominate Capital markets consider these as positive By con trast they consider layoffs in times of crisis when undertaken for the most part as a response to dist ress as negative In the aftermath of the financial crisis stock price reaction continues to remain ne gative and highly significant Again the negative reaction is strongest in the largest event window 5 5 with an average 1 62 percent price loss The difference between pre and post crisis is sta tistically significant in the larger event windows that include five days prior to the announcement The observed price effect could be a sign for a ner vous sentiment in financial markets It could also indicate that the crisis still persists as the real un derlying problems of the European debt crisis are not resolved yet Hypothesis 3 holds under the as sumption that financial markets have been rather stagnating than rising since 2009 The following figure 5 3 displays the stock price reaction during pre crisis crisis and post crisis periods graphically Figure 5 3 Stock price reactions to bank layoff announcements in different periods 0 0 1 0 5 4 3 2 1 0 1 2 3 4 5 0 5 0 5 1 0 1 5 2 0 2 5 3 0 cu m ul at iv e av er ag e ab no rm al re tu rn C AA R in Post Crisis n 117 Pre Crisis n 44 Crisis n 49 days relative to announcement day The influence of the country specific strictness of employment protection law is tested through univariate and multivariate analyses According to OECD data OECD 2016a the level of strictness is by far lowest in the United States which means that individual and collective dismissals can be undertaken quickly and easily The difference to the United Kingdom the European State with the least stringent legislation is great the OECD figure for the UK is more than four times higher For the univariate analysis I thus distinguish between US banks and Non US banks The univariate analysis of abnormal returns follo wing announcements of US based banks versus those of Europe based banks presents an unam biguous picture Although shareholders in both Layoffs and shareholder wealth

Vorschau DIRK-Forschungsreihe Band 21 Workforce diversity and personal policies Seite 141
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