search query: @indexterm plant closures / total: 32
reference: 7 / 32
| Author: | Blackwell, D. W. Marr, M. W. Spivey, M. F. |
| Title: | Plant-closing decisions and the market value of the firm |
| Journal: | Journal of Financial Economics
1990 : AUG, VOL. 26:2, p. 277-288 |
| Index terms: | PLANT CLOSURES DECISION MAKING VALUATION EARNINGS PROFITABILITY STOCK MARKETS |
| Language: | eng |
| Abstract: | The underlying causes and the announcement effects of plant closings are investigated. The closings in the sample do not appear related to takeover activity. Instead, they appear motivated by declining firm profitability. Firms announcing closings have lower earnings than market or industry medians; earnings typically improve slightly after the announcement. It is found that there is a negative stock-market reaction to plant-closing announcements. |
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