The impact of the WARN Act on firm value
The Worker Adjustment and Retraining Notification (WARN) Act of 1989 mandated that at least 60 days advance notice be given to employees. Critics argued that its passage would decrease managerial flexibility in closing plants, subsequently reducing firm values. This study addresses this issue by exa...
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| Veröffentlicht in: | The Quarterly review of economics and finance 1997, Vol.37 (4), p.905-921 |
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| container_title | The Quarterly review of economics and finance |
| container_volume | 37 |
| creator | Alexander, John C. Spivey, Michael F. |
| description | The Worker Adjustment and Retraining Notification (WARN) Act of 1989 mandated that at least 60 days advance notice be given to employees. Critics argued that its passage would decrease managerial flexibility in closing plants, subsequently reducing firm values. This study addresses this issue by examining the stock market's reaction to announcements leading to the eventual enactment of the WARN legislation. We find evidence indicating negative effects of the legislation on stock returns of small firms. |
| doi_str_mv | 10.1016/S1062-9769(97)90010-7 |
| format | Article |
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| identifier | ISSN: 1062-9769 |
| ispartof | The Quarterly review of economics and finance, 1997, Vol.37 (4), p.905-921 |
| issn | 1062-9769 1878-4259 |
| language | eng |
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| source | Elsevier ScienceDirect Journals Complete - AutoHoldings; RePEc; Business Source Complete; Periodicals Index Online |
| subjects | Business enterprises Effects Federal legislation Laws, regulations and rules Layoffs Legislation Organizational change Plant shutdowns Rates of return Return on investment Securities markets Shutdowns Statistical analysis Stock-exchange Studies Valuation |
| title | The impact of the WARN Act on firm value |
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