The Association Between Enterprise Downsizing And Operating Performance

• Main Authors: Jimmy Chan, 陳志成
• Other Authors: Chung-wen Hung
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/51391643769515868709

碩士 === 南台科技大學 === 會計資訊系 === 95 === Because of downsizing is the primary method for most companies who want to improve their performance, therefore, the purpose for this research is to find out the relationship among downsizing and operating performance. We used 41 corporations who used downsizing method during 1996 to 2002 as our sampling population, and the empirical results will be used to assess the discrepancies between back and forth four years of each observing point. We used "raw performance," "industry-adjusted performance" and "matched-firm-adjusted performance," as our primary research methods to examine the consequences of each downsizing event, and then we use "event study" as the subsequence to examine the influence of stock price. We found out that the operating performance were getting better off after using downsizing method, and we found out that the improvement of expenditures of sales, labors, and R&D will increase corporations’ operating performance as well. Thereafter, we used regression method to find out the influential factors of downsizing results. For the event-study section, we argued the relationship between company’s structures and abnormal return. Companies in Taiwan were continuously recruiting new employees, and purchasing new properties in the past decades, afterwards, they often got many idle resources which would decrease their competitiveness. This research is to generate useful information on improving operating performance while facing downsizing situation.