Workforce reduction and firm performance: evidence from French firm data (1994–2000)

Abstract

Using a large annual data base of French firms (1994-2000), this article examines the determinants of a workforce reduction of publicly-listed and non-listed companies and their consequences on firm performance. Firstly, workforce reduction appears to be a defensive response to an adverse economic shock. However, publicly-listed firms anticipate better than the others the decision to cut jobs. Secondly, using a Difference in Differences model, the estimates indicate that there has been a very small but significant improvement in the major performance indicators of the non-listed companies. For listed-companies, the estimates are no significant.

The Impact of Labour Force Reduction on the Financial Performance of Manufacturing Companies

“…Raynaud (2012) found that reducing labour force was positively associated with increases in an organisation's ROA in both the short (one year) medium (3 years) and long term (5 years) at a steady climb. The positive result was more prominent in non-listed organisation as they give precedence to economic rather that accounting figures (Reynaud, 2013). De Meuese and Dai (2013) noted an improvement in ROTA in the year of labour force reduction and a continuous upward trend post labour force reduction reflecting the positive relationship between downsizing and firm performance.…”

Analisis Pengaruh Kondisi Keuangan Dan Perubahan Strategi Terhadap Pengurangan Karyawan Serta Implikasinya Terhadap Kinerja Keuangan

“…Penelitian dengan hal sejenis menemukan bahwa sifat financial distress yang memicu pengurangan tenaga kerja (Reynaud, 2012), kemudian juga menemukan pengurangan tenaga kerja tampaknya merupakan respons defensive terhadap guncangan ekonomi yang merugikan. Hasil lain (Kielselbach, 2007)menunjukkan bahwa kebangkrutan perusahaan mengarah pada perampingan yang signifikan, ketika sebuah perusahaan mengajukan kebangkrutan, karyawannya secara signifikan lebih cenderung bekerja lebih sedikit, meninggalkan perusahaan (John R Graham, Hyunseob Kim, Si li, Jiaping Qiu, 2016).…”

“…Identifikasi empiris strategi pengurangan karyawan tidak selalu jelas dilakukan (Karlsson, 2012). Penelitian lain menemukan dari kelompok yang terdaftar dan tidak terdaftar di bursa efek, perusahaan yang melakukan kebijakan perampingan atau pengurangan karyawan tidak mempertahankan kinerja keuangan (ROE) (Reynaud, 2012). Penemuan selanjutnya bahwa 70% tingkat kegagalan berasal dari jawaban atas pertanyaan apakah perampingan yang dilakukan perusahaan gagal atau sukses adalah masih ambigu atau tidak jelas (Hughes, 2011).…”

“…Hasil penelitian ini juga sejalan dengan penelitian terdahulu salah satunya seperti penelitian Benedicte Reynaud, (2010) yang menemukan bahwa sifat penurunan kinerja/financial distress yang memicu pengurangan tenaga kerja, selain itu Benedicte Reynaud (2012) kemudian juga menemukan pengurangan tenaga kerja tampaknya merupakan respons defensif terhadap guncangan ekonomi yang merugikan.…”

Crisis adjustment strategies in France: The contribution of establishment-level data

“…This allows for greater flexibility in operating costs, and thus protects the bottom line. However, stock market listing does not seem to be associated with workforce retention policies in the event of a strong decline in business, as shown by Reynaud (2012) and Deroyon and Romans (2014).…”