| Summary: | 碩士 === 國立中央大學 === 人力資源管理研究所 === 105 === The 2008 global financial tsunami led to a great economic recession, in which Taiwan has also been seriously affected. Many companies have begun to deploy employee downsizing to ease the operating difficulties. However, there are two different views on the effect of laying-off employees on firm performance. The difference may depend on whether it is concerned with downsizing physical assets or not. In addition, taking account of the endogenous factors will also influence the firm's tendency to implement the strategy of employee downsizing.
Based on the accompanying changes in physical assets, this study divides employee downsizing into four types and focuses on the impact of various employee downsizing strategies on firm performance. This article focuses on the proportion of outside directors, proportion of executive incentive pays, diversification and firm's pre-performance as the determinations of employee downsizing to verify how they will affect the tendency of companies to implement the strategy for laying off employees. Finally, we use instrumental variable to estimate the effect of the employee downsizing strategy to firm performance after considering the endogenous factors. The data was collected from companies listed in the Taiwan Stock Exchange between 2009 and 2013, which includes the panel data with 388 listed companies and 1940 observations.
The results indicate that employee downsizing strategies have a negative effect on firm performance during the economic recession period. Besides, the proportion of outside directors and proportion of executive incentive pays have a positive relationship with the tendency of companies to implement the employee downsizing strategies, while diversification and firm's pre-performance have a negative relationship with the tendency of companies to implement the employee downsizing strategies.
|
|---|
