| Summary: | 碩士 === 國立成功大學 === 國際企業研究所碩博士班 === 92 === This study investigates stock price response to the announcement of 145 layoffs by American firms in public from 1996 to 2002. According previous studies, proactive or reactive layoff is the main factors to affect the outcome of layoff announcements. Although the previous researches all indicate the reactive layoffs have negative impact, the proactive layoffs effect is still a dispute. And we never find any study discuss the trend of company stock return before announcement that may affect the outcome of proactive and reactive layoffs, so this study sets this new variable and examines it.
First, this study discusses the causes of layoffs then adopts event study with market model and regression analysis. The event study result reveals the effect of layoff announcements is significantly negative and sustains about two days before and after the announcing day. The new variable we set up is also significant and has trade-off relationship to the effect of proactive and reactive layoff announcements.
In the regression analysis, we establish different conditions to examine the layoff forms, information impacts and other variables that may affect the abnormal return of the announcements. The result indicates the scale of the layoff is the main factor that affects outcome of layoff announcements. The other information variables are significant in different conditions.
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