A comparative analysis of layoff announcements and stock price reactions in the United States and Japan

Article Abstract:

The effects of layoffs and downsizing measures, two major coping strategies for US firms, on share valuation for both US and Japanese firms are analyzed. The utilization of layoffs is a measure that is applied in Japan only on conditions of financial distress due to the nation's policy of lifetime employment. Market reactions regarding layoff announcements from 1990 to 1994 for both nations are used in the analysis. The differences between the management structures of Japanese and US firms are discussed using both Aoki's cooperative game theory and agency theory. The results indicate a negative stock market reaction for both countries following layoff announcements. US layoff announcements are typically associated with a negative 1.78% return while those in Japan are met with a negative 0.56% abnormal return.

Economic aspects, Japan, Prices and rates, Stocks, Securities, Securities prices, Stock prices, Layoffs

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Debt busters

Article Abstract:

The rising number of Canadians declaring bankruptcy have spelled increased business for personal bankruptcy trustees. About 80,000 Canadians filed for bankruptcy in 1996 compared to the 1,900 in 1966. Factors such as increased unemployment, easy access to credit and changing attitudes towards debt have also contributed to the growth. Trustees deal with debtors from all walks of life and often assume the added roles of psychologist and social worker.

Practice, Bankruptcy trustees

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Saving the exchange

Article Abstract:

A description is presented of the career and achievements of the Toronto Stock Exchange Chief Executive Officer Barbara Stymiest. Her ambitions to introduce regulatory changes and attract investment are discussed.

Officials and employees, Behavior, Chief executive officers, Toronto Stock Exchange, Stymiest, Barbara

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