The changing relationship between job loss announcements and stock prices: 1970–1999

We study the reaction of stock prices to announcements of reductions in force (RIFs) using a sample of 4273 such announcements in 1160 large firms during the 1970–99 period collected from the Wall Street Journal. We note that the total number of actual announcements for the firms in our sample follows the business cycle quite closely. We then examine changes over time in standard summary statistics (means, medians, fraction positive) of the distribution of stock market reactions, measured by the cumulative excess returns (CER) of firms' stock prices over a 3-day event window centered on the announcement date, as well as changes over time in kernel density estimates of this distribution. We find clear evidence that the distribution of stock market reactions shifted to the right (became less negative) over time. One possible explanation for this change is that, over the last three decades, RIFs designed to improve efficiency have become more common relative to RIFs designed to cope with reductions in product demand. We estimate multivariate regression models of the CER controlling for the stated reason for the announced layoff, industry, and other characteristics of the announced layoff. We find that almost none of the decline in the negative average stock price reaction between the 1970s and 1990s can be explained by these factors.     

Voluntary Disclosure by State-owned Enterprises Listed on the Stock Exchange of Hong Kong

This study examines the impact of international capital market pressures on the voluntary disclosure of three types of information (strategic, financial, and non-financial) in the annual reports of former wholly state-owned People's Republic of China (PRC) enterprises, listed on the Stock Exchange of Hong Kong (SEHK). Consistent with a cost­benefit framework, we find that PRC H-Share firms disclose significantly more strategic and financial information than other SEHK firms. Additional analysis of disclosures in their home listings on the PRC exchanges, however, suggests an alternative explanation. The fact that these firms have been selected for "showcasing" in international capital markets may also play a role in our findings. While H-Share firm disclosures in the PRC also appear sensitive to management's assessment of the associated costs, the magnitude of differences across listing locations suggests that disclosure practices on the SEHK may also reflect the effects of state-encouraged disclosure policies. Our findings contribute to the understanding of disclosure behavior among former wholly state-owned enterprises and to the emerging literature on the efficacy of the privatization process.     

Use of work–nonwork supports and employee well-being: the mediating roles of job demands,job control,supportive management and work–nonwork conflict

Abstract

This paper examines the impact of the use of work–nonwork supports on well-being. It first develops hypotheses regarding how a reduction in job demands, and an increase in both job control and supportive management may explain this relationship. We then test these hypotheses using data from Britain’s Workplace Employee Relations Survey of 2011. The research reveals that the use of work–nonwork supports has a positive association with job control and supportive supervision. These in turn mediate a relationship between the use of supports and three dimensions of employee well-being, job satisfaction, anxiety-contentment and depression-enthusiasm, some of the effect being through their reducing work–to–nonwork conflict. Use of work–nonwork supports is, however, positively associated with job demands, but this effect of use on job demands does not affect well-being. Since job autonomy and supportive supervision are major mediators, and have a direct influence on work–nonwork conflict and well-being, policy should focus on integrating job quality and work–life balance issues.