Spillover Effects of Mass Layoffs

2018 ◽  
Vol 18 (1) ◽  
pp. 427-468 ◽  
Author(s):  
Christina Gathmann ◽  
Ines Helm ◽  
Uta Schönberg
Keyword(s):  
Event Study ◽  
Administrative Data ◽  
Regional Economy ◽  
Spillover Effects ◽  
Geographic Mobility ◽  
Employment Opportunities ◽  
Employment Effects ◽  
Study Approach ◽  
Mass Layoffs ◽  
Mass Layoff

Abstract Using administrative data on firms and workers in Germany, we quantify the spillover effects of mass layoffs. Our empirical strategy combines matching with an event study approach to trace employment and wages in regions hit by a mass layoff relative to suitable control regions. We find sizable and persistent negative spillover effects on the regional economy: regions, and especially firms producing in the same broad industry as the layoff plant, lose many more jobs than in the initial layoff. In contrast, negative employment effects on workers employed in the region at the time of the mass layoff are considerably smaller. Strikingly, workers younger than 50 suffer no employment losses, as geographic mobility fully shields them from the decline in local employment opportunities.

Spillover effects of the US monetary policy on the Indian trilemma

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Harpreet Singh Grewal ◽  
Pushpa Trivedi
Keyword(s):  
Monetary Policy ◽  
Event Study ◽  
Spillover Effects ◽  
Subject Area ◽  
Open Market ◽  
Content Type ◽  
Study Approach ◽  
The Us ◽  
The Impact ◽  
Us Monetary Policy

PurposeThe purpose of this paper is to investigate the impact of the US unconventional monetary policy surprises on the management of trilemma in India.Design/methodology/approachThis paper uses the event study approach along with OLS and MANOVA to examine the impact.FindingsThe results validate the existence of trilemma in India for the period from October 2008 to December 2017. The results also show that monetary policy independence still exists in India in the wake of greater spillover effects during the Federal Open Market Committee announcement days. The spillover effects on USD-INR exchange rates and capital flows are found to be statistically significant. The MANOVA results show that the trilemma in India is influenced by around 20% by the changes in the US monetary policy.Originality/valueThe above approach of event study combined with MANOVA in this subject area has not been used before to the best of the authors’ knowledge. Further, there are only a few studies that exist on the spillover effects of the US monetary policy actions on the management of trilemma in India.

scholarly journals Reconsidering the Consequences of Worker Displacements: Firm versus Worker Perspective

2019 ◽  
Vol 11 (2) ◽  
pp. 193-227 ◽  
Author(s):  
Aaron Flaaen ◽  
Matthew D. Shapiro ◽  
Isaac Sorkin
Keyword(s):  
Survey Data ◽  
Administrative Data ◽  
Displaced Workers ◽  
Economic Distress ◽  
Earnings Dynamics ◽  
Mass Layoffs ◽  
Earnings Losses ◽  
Prior Literature ◽  
Survey Responses ◽  
Mass Layoff

Prior literature has established that displaced workers suffer persistent earnings losses by following workers in administrative data after mass layoffs. This literature assumes that these are involuntary separations owing to economic distress. This paper examines this assumption by matching survey data on worker-supplied reasons for separations with administrative data. Workers exhibit substantially different earnings dynamics in mass layoffs depending on the reason for separation. Using a new methodology to account for the increased separation rates across all survey responses during a mass layoff, the paper finds earnings loss estimates that are surprisingly close to those using only administrative data. (JEL E32, J31, J63, J64, J65)

scholarly journals The Effects Of Violent Events On The Mexican Stock Market

2020 ◽  
Vol 36 (4) ◽  
pp. 171-180
Author(s):  
Magali Valero ◽  
Jorge Valero-Gil
Keyword(s):  
Stock Market ◽  
Emerging Markets ◽  
Event Study ◽  
Latin American ◽  
Spillover Effects ◽  
Study Approach ◽  
The Impact ◽  
The U.S ◽  
Violent Events

We study the impact of violent events on the Mexican stock market, by using an event study approach. Our results show that the Mexican stock market reacts negatively to news of violent events. This news, however, have no spillover effects into other Latin American and emerging markets, nor to the U.S. market, where their occurrence was inconsequential.

scholarly journals Is ESG Relevant to Electricity Companies during Pandemics? A Case Study on European Firms during COVID-19

2022 ◽  
Vol 14 (2) ◽  
pp. 852
Author(s):  
Florin Teodor Boldeanu ◽  
José Antonio Clemente-Almendros ◽  
Ileana Tache ◽  
Luis Alberto Seguí-Amortegui
Keyword(s):  
Event Study ◽  
Stock Prices ◽  
Initial Phase ◽  
Negative Impact ◽  
Abnormal Returns ◽  
Negative Influence ◽  
Electricity Sector ◽  
Renewable Electricity ◽  
Study Approach

The electricity sector was negatively impacted by the coronavirus disease (COVID-19), with considerable declines in consumption in the initial phase. Investors were in turmoil, and stock prices for these companies plummeted. The aim of this paper is to demonstrate the significant negative influence of the pandemic on abnormal returns for the electricity sector, specifically for traditional and renewable companies and the influence of ESG scores, using the event study approach and multi-variate regressions. Our results show that the pandemic indeed had a negative impact on the electricity sector, with renewable electricity companies suffering a sharper decline than traditional ones. Moreover, we find that ESG pillar scores affected electricity companies differently and are sector-specific. For renewable electricity companies, the returns were positively influenced by the environmental ESG scores and negatively by governance ESG scores.

scholarly journals Profiting on the Stock Market in Pandemic Times: Study of COVID-19 Effects on CESEE Stock Markets

Mathematics ◽  
2021 ◽  
Vol 9 (17) ◽  
pp. 2077
Author(s):  
Tihana Škrinjarić
Keyword(s):  
Stock Market ◽  
Event Study ◽  
Stock Markets ◽  
Trading Strategies ◽  
Eastern European ◽  
Negative Effects ◽  
Market Reactions ◽  
Study Approach ◽  
Study Methodology ◽  
Stock Market Reactions

This research deals with stock market reactions of Central Eastern and South Eastern European (CESEE) markets to the COVID-19 pandemic, via the event study methodology approach. Since the stock markets react quickly to certain announcements, the used methodology is appropriate to evaluate how the aforementioned markets reacted to certain events. The purpose of this research was to evaluate possibilities of obtaining profits on the stock markets during great turbulences, when a majority of the participants panic. More specifically, the contrarian trading strategies are observed if they can obtain gains, although a majority of the markets suffer great losses during pandemic shocks. The contributions to the existing literature of this research are as follows. Firstly, empirical research on CESEE stock markets regarding other relevant topics is still scarce and should be explored more. Secondly, the event study approach of COVID-19 effects utilized in this study has (to the knowledge of the author) not yet been explored on the aforementioned markets. Thirdly, based on the results of CESEE market reactions to specific announcements regarding COVID-19, a simulation of simple trading strategies will be made in order to estimate whether some investors could have profited in certain periods. The results of the study indicate promising results in terms of exploiting other investors’ panicking during the greatest decline of stock market indices. Namely, the initial results, as expected, indicate strong negative effects of specific COVID-19 announcements on the selected stock markets. Secondly, the obtained information was shown to be useful for contrarian strategy in order to exploit great dips in the stock market indices values.

scholarly journals The Effect of Dividend Initiation on Short-run Return in Indonesia: An Event Study with Propensity Score Matching Approach

2016 ◽  
Vol 11 (12) ◽  
pp. 207
Author(s):  
Bambang Sugeng
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
Event Study ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Traditional Approach ◽  
Abnormal Returns ◽  
Listed Firms ◽  
Study Approach ◽  
Short Run

<p>Dividend initiation policy offers a relatively unique practical and conceptual characteristics compared to those of regular dividend. This study aims at investigating whether initial dividend policy of Indonesian firms affects short-run stock return, while further exploring the implementation of a new event study approach, <em>propensity score matching</em>, as an experimental-like design. This approach is based on actual rather than estimated abnormal return commonly used in traditional approach. Applying this new approach, this study found no significant abnormal returns around dividend initiation announcement by firms listed in Indonesia Stock Exchange. The findings imply that the dividend initiation behavior of Indonesian firms is proved not fully to follow the theoretical framework of signaling model, a dividend model which is basically developed primarily based on regular dividend behavior. The results partly contradict those findings mostly resulted from researchs conducted in advanced market context but seem to support contextuality argument of dividend policy. From methodological perspective, this study identified that the use of propensity score matching approach needs a large number of firms from which control firms are selected, accordingly the study conducted in market with limited number of listed firms such as in Indonesia could generates selection problem of control firms that optimally match treated firms.</p>

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