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Article in Journal ()

Investor reactions, social implications and layoff announcements in the UK: A comparison between periods

Citation
McKnight PJ, Lowrie A & Coles C (2002) Investor reactions, social implications and layoff announcements in the UK: A comparison between periods, Journal of Management and Governance, 6 (1), pp. 83-100.

Abstract
This study examined the effect of layoff announcements on shareholder wealth. Second, it further discusses the social implications of layoffs and the extent to which investor reactions towards layoffs may have changed over time. Details of layoff announcements for UK listed companies were gathered for the periods 1980 to 1984 and 1990 to 1995 inclusive. Comparative to prior U.S. findings, the results show that UK investors do respond negatively to announcements categorised as reactive. Two findings not established by prior research were: (1) UK investor reactions appear to be much more sensitive to layoffs in the 1990's as opposed to the 1980s, and (2) UK investors appeared increasingly sensitive toward layoffs compared to their US counterparts.

Keywords
layoff announcement; share price; social implications; United Kingdom

StatusPublished
AuthorsMcKnight Phillip J, Lowrie Anthony, Coles Christopher
Publication date2002
PublisherSpringer
ISSN 1385-3457
LanguageEnglish

Journal
Journal of Management and Governance: Volume 6, Issue 1 (2002)

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