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dc.contributor.authorAtaullah, A
dc.contributor.authorLe, H
dc.contributor.authorWang, Z
dc.contributor.authorWood, G
dc.date.accessioned2022-05-13T23:30:12Z
dc.date.available2022-05-13T23:30:12Z
dc.date.issued2022-07
dc.identifier.issn1057-5219
dc.identifier.urihttps://www.repository.cam.ac.uk/handle/1810/337141
dc.description.abstractWhile firms regularly reduce workforce following sharp performance decline, diversified firms may abstain from employment downsizing by transferring capital and labor between segments (the allocative flexibility effect). However, downsizing may be more likely if a performance shock leads to efforts to reduce inefficiency in resource allocation (the inefficient internal market effect). Using a large cross-country dataset, our results provide strong support for the inefficient internal market effect. We find that diversified firms are more likely to downsize and the national employment protection and union power laws moderate this link. We also find that diversified firms with more excess employment are more likely to downsize and that downsizing following major adverse performance shocks is associated with lower level of diversification and excess employment.
dc.publisherElsevier BV
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/
dc.titleCorporate diversification and downsizing decisions: International evidence from sharp and sudden performance shocks
dc.typeArticle
dc.publisher.departmentDepartment of Land Economy
dc.date.updated2022-05-12T15:23:11Z
prism.publicationNameInternational Review of Financial Analysis
dc.identifier.doi10.17863/CAM.84560
dcterms.dateAccepted2022-05-06
rioxxterms.versionofrecord10.1016/j.irfa.2022.102203
rioxxterms.versionVoR
rioxxterms.typeJournal Article/Review
cam.issuedOnline2022-05-10
cam.orpheus.successWed Aug 03 09:45:39 BST 2022 - Embargo updated
cam.orpheus.counter7
cam.depositDate2022-05-12
pubs.licence-identifierapollo-deposit-licence-2-1
pubs.licence-display-nameApollo Repository Deposit Licence Agreement


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Attribution-NonCommercial-NoDerivatives 4.0 International
Except where otherwise noted, this item's licence is described as Attribution-NonCommercial-NoDerivatives 4.0 International