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. https://doi.org/10.1023/A%3A1015563926170
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.
Journal of Management and Governance: Volume 6, Issue 1