Does the fashion of a management strategy affect the stock price? An event study of the fashion of downsizing
(2009)Department of Business Administration
- Abstract
- The purpose with this thesis is to examine whether the popularity of downsizing as a management strategy has an effect on the stock market's reactions when a company announces downsizing. This thesis has employed a quantitative method. An event study has been used and we have calculated the normal and abnormal return using the market model. Data has been collected from Datastream in forms of stock prices and Affärsdata has been used to find the announcements about downsizing. The event window has been (-2, +2) days considering previous research. According to the statistical tests there are no differences between the two CAARs, which means that the stock market´s reaction to an announcement of downsizing does not differ when downsizing was... (More)
- The purpose with this thesis is to examine whether the popularity of downsizing as a management strategy has an effect on the stock market's reactions when a company announces downsizing. This thesis has employed a quantitative method. An event study has been used and we have calculated the normal and abnormal return using the market model. Data has been collected from Datastream in forms of stock prices and Affärsdata has been used to find the announcements about downsizing. The event window has been (-2, +2) days considering previous research. According to the statistical tests there are no differences between the two CAARs, which means that the stock market´s reaction to an announcement of downsizing does not differ when downsizing was in fashion and when it was not. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/1437798
- author
- Johansson, Pontus ; Ekstrand, Mattias and Treschow, Herman
- supervisor
- organization
- year
- 2009
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Downsizing, Management Strategy, Abnormal Return, CAR, Event study, Market model, Efficient market hypothesis, Survivor syndrome, Signaling hypothesis, Management of enterprises, Företagsledning, management
- language
- Swedish
- id
- 1437798
- date added to LUP
- 2009-06-03 00:00:00
- date last changed
- 2012-04-02 17:24:12
@misc{1437798,
abstract = {{The purpose with this thesis is to examine whether the popularity of downsizing as a management strategy has an effect on the stock market's reactions when a company announces downsizing. This thesis has employed a quantitative method. An event study has been used and we have calculated the normal and abnormal return using the market model. Data has been collected from Datastream in forms of stock prices and Affärsdata has been used to find the announcements about downsizing. The event window has been (-2, +2) days considering previous research. According to the statistical tests there are no differences between the two CAARs, which means that the stock market´s reaction to an announcement of downsizing does not differ when downsizing was in fashion and when it was not.}},
author = {{Johansson, Pontus and Ekstrand, Mattias and Treschow, Herman}},
language = {{swe}},
note = {{Student Paper}},
title = {{Does the fashion of a management strategy affect the stock price? An event study of the fashion of downsizing}},
year = {{2009}},
}