| Summary: | 碩士 === 元智大學 === 財務金融學系 === 98 === This research begins with a sample of 1,176 firm-year observations where firms declare layoff announcements between 1995 and 2007. This study examines whether firms’ research and development (R&D) projects affect firms’ layoff decisions and explore the relationship between the layoff and R&D. Moreover, both corporate layoff mechanisms and R&D projects can bring firms operating and economic benefits. We find that firms’ layoff decisions are preceded by a period of poor stock market, poor earnings performance and a period of increased volume of R&D capital, and they are followed by significant improvements in stock market and operating performances. Besides, higher R&D intensity firms have better stock market performance than lower ones. We do not find evidence that layoff announcements are followed by abnormal returns in short-term or long-term period. However, the findings of this study support the view that corporate strategic decisions such as layoff decisions and R&D projects indeed bring firms improvement in performances.
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