Layoffs, top executive pay, and firm performance

Article Abstract:

A correlation of layoffs, CEO pay and the firm's stock performance to validate the anecdotal observation regarding CEO pay and layoffs shows that there is evidence that such a correlation exists, with firms announcing layoffs providing higher CEO pay which is correlated with the firm's size. But controls placed on such factors as firm size and performance and layoff announcements showed a negative correlation, with CEOs experiencing a slight negative effect on pay and a corresponding decrease in the stock performance of the firm's stocks.

Employee Termination, Models, Compensation and benefits, Executives, Executive compensation, Layoffs, Employment terminations, Downsizing (Management)

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GMM inference when the number of moment conditions is large

Article Abstract:

A study was conducted on the estimation of asymptotic precision using a large number of moment conditions using a linear GMM model with general heteroscedasticity. Results showed that a large number of moment conditions are needed for asymptotic precisions in the GMM model. The number of moment conditions determine estimation of the linear model. The distribution of the GMM estimates is an efficient estimator for linear models with heteroscedasticity.

Econometrics & Model Building, Research, Econometrics, Nonparametric statistics, Business models, Linear models (Statistics), Heteroscedasticity, Asymptotic distribution (Probability theory)

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