Literature Review Women on boards and in TMTS and firm performance 143 5 6 2 Multivariate analysis of the announce ment effect Hypothesis 5 predicts that the stock price reaction to large bank layoff announcements will be nega tive and increase with layoff size This effect has been shown in several studies Elayan et al 1998 Hillier et al 2007 Nixon et al 2004 Worrell et al 1991 I test the impact of layoff size on CAAR through a multivariate regression The negative coefficient indicates that capital markets do not consider large scale dismissals as a value enhan cing measure It is reasonable to assume a nega tive effect of absolute and relative layoff size on shareholder value Consequently large scale staff cuts lead to lower positive abnormal returns re spectively stronger negative abnormal returns While the natural logarithm of the number of employees affected has no effect on the announce ment day 0 0 and only marginal negative im pact in the larger event windows the effect of the percentage is more pronounced and largest in the eleven days window with a value of 0 214 Model V However none of the observed effects of layoff size on returns is statistically significant Thus hypothesis 5 has to be rejected With respect to the variable investment banking Figure 5 4 displays the stock price reaction to layoff announcements by banks in the United States and by banks headquartered in Western Europe in an event window of eleven days around the announ cement day 0 40 0 00 5 4 3 2 1 0 1 2 3 4 5 0 60 0 20 0 80 100 1 20 1 60 1 40 1 80 2 00 cu m ul at iv e av er ag e ab no rm al re tu rn CA AR in Non U S n 131 U S n 79 days relative to the announcement day Figure 5 4 Stock price reaction to bank layoff announcements by bank location Layoffs and shareholder wealth

Vorschau DIRK-Forschungsreihe Band 21 Workforce diversity and personal policies Seite 143
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