The Strength of Showing Weakness: Organizational Supplication and Investor Reactions to Workforce Downsizing
MATTHIAS F. BRAUER, Louis Vandepoele
University of Mannheim
阅读操作
确认中在文库中上传 PDF 后可生成中文音频讲解。
摘要与影响
Strategy research usually assumes that displays of weakness are disadvantageous for firms. In this study, we challenge this assumption. We propose that deliberate displays of weakness can help firms preserve stakeholder approval when taking controversial decisions. To test this proposition, we examine the use and effectiveness of organizational supplication in the context of workforce downsizing. Building on impression management theory, we predict that firms portray themselves as weak through downward earnings management before workforce downsizing announcements, and that this supplication tactic helps attenuate investors’ negative reactions. Moreover, we posit that supplication paired with an efficiency-focused verbal justification for the downsizing is particularly effective at attenuating negative investor reactions to downsizing announcements, as an additional verbal justification lends authenticity to the downsizing firm’s supplication attempt. Yet, we also theorize that organizational supplication through downward earnings management is less effective if positive firm evaluations by security analysts and the business media make it appear inauthentic. The empirical analysis of nearly 600 workforce downsizing announcements by the largest listed U.S. firms between 2001 and 2020 supports our theoretical predictions.
逐年被引趋势
关键指标
同类平均 = 1
同领域 · 同年份 · 同类型
Google Scholar 与 OpenAlex 的被引统计范围不同,数值存在差异属正常。
AI 辅助阅读
依据:摘要
可就本文提问;依据不足时会说明。
学术脉络
学科主题
经济 / 管理Organizational Downsizing and Restructuring
Auditing, Earnings Management, Governance · Corporate Finance and Governance
参考文献 179
此处列出前 3 条
引用本文 1
按被引量排序,此处列出前 3 条