Downsizing and firm performance: : evidence from German firm data

• Autores: Tim Goesaert, Matthias Heinz, Stijn Vanormelingen
• Localización: Industrial and Corporate Change, ISSN-e 1464-3650, Vol. 24, Nº. 6, 2015, págs. 1443-1472
• Idioma: inglés
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• Resumen

  • This article uses a unique data set to study the short-term effects of downsizing on operational and financial performance of large German firms. In general, productivity and profitability after downsizing are—at the best—comparable to their pre-downsizing levels. During the downsizing event, the performance even drops. Moreover, we make a distinction between firms downsizing because of a business downturn and firms downsizing to increase efficiency. Especially downsizing for the latter firms appears to be unsuccessful