Elayan, Fayez A.; Swales, George S.; Maris, Brian A.; … - In: Journal of Business Finance & Accounting 25 (1998-04) 3&4, pp. 329-351
Two hypotheses are considered to explain employee layoffs by corporations: (1) the declining investment opportunities hypothesis; and (2) the efficiency hypothesis. The stock market response to employee layoff announcements is estimated to be negative, which is consistent with the declining...