LEADER 04824oam 22012134 450 001 9910162944103321 005 20230808201422.0 010 $a1-4755-6772-3 010 $a1-4755-6775-8 035 $a(CKB)3710000001045033 035 $a(MiAaPQ)EBC4800297 035 $a(IMF)WPIEA2016255 035 $a(EXLCZ)993710000001045033 100 $a20020129d2016 uf 0 101 0 $aeng 135 $aurcnu|||||||| 181 $2rdacontent 182 $2rdamedia 183 $2rdacarrier 200 10$aStrategic Corporate Layoffs /$fRuchir Agarwal, Julian Kolev 210 1$aWashington, D.C. :$cInternational Monetary Fund,$d2016. 215 $a1 online resource (78 pages) $cillustrations (some color), graphs, tables 225 1 $aIMF Working Papers 311 $a1-4755-6392-2 320 $aIncludes bibliographical references. 330 3 $aFirms in the S&P 500 often announce layoffs within days of one another, despite the fact that the average S&P 500 constituent announces layoffs once every 5 years. By contrast, similarsized privately-held firms do not behave in this way. This paper provides empirical evidence that such clustering behavior is largely due to CEOs managing their reputation in financial markets. To interpret these results we develop a theoretical framework in which managers delay layoffs during good economic states to avoid damaging the markets perception of their ability. The model predicts clustering in the timing of layoff announcements, and illustrates a mechanism through which the cyclicality of firms layoff policies is amplified. Our findings suggest that reputation management is an important driver of layoff policies both at daily frequencies and over the business cycle, and can have significant macroeconomic consequences. 410 0$aIMF Working Papers; Working Paper ;$vNo. 2016/255 606 $aLayoff systems 606 $aChief executive officers 606 $aFinance: General$2imf 606 $aLabor$2imf 606 $aMacroeconomics$2imf 606 $aLabor Turnover$2imf 606 $aVacancies$2imf 606 $aLayoffs$2imf 606 $aFinancing Policy$2imf 606 $aFinancial Risk and Risk Management$2imf 606 $aCapital and Ownership Structure$2imf 606 $aValue of Firms$2imf 606 $aGoodwill$2imf 606 $aInformation and Market Efficiency$2imf 606 $aEvent Studies$2imf 606 $aBusiness Fluctuations$2imf 606 $aCycles$2imf 606 $aPrices, Business Fluctuations, and Cycles: General (includes Measurement and Data)$2imf 606 $aLabor Force and Employment, Size, and Structure$2imf 606 $aGeneral Financial Markets: General (includes Measurement and Data)$2imf 606 $aLabor Economics: General$2imf 606 $aWages, Compensation, and Labor Costs: General$2imf 606 $aEconomic growth$2imf 606 $aLabour$2imf 606 $aincome economics$2imf 606 $aFinance$2imf 606 $aBusiness cycles$2imf 606 $aLabor force$2imf 606 $aStock markets$2imf 606 $aWages$2imf 606 $aFinancial markets$2imf 606 $aLabor market$2imf 606 $aStock exchanges$2imf 606 $aLabor economics$2imf 607 $aUnited States$2imf 615 0$aLayoff systems. 615 0$aChief executive officers. 615 7$aFinance: General 615 7$aLabor 615 7$aMacroeconomics 615 7$aLabor Turnover 615 7$aVacancies 615 7$aLayoffs 615 7$aFinancing Policy 615 7$aFinancial Risk and Risk Management 615 7$aCapital and Ownership Structure 615 7$aValue of Firms 615 7$aGoodwill 615 7$aInformation and Market Efficiency 615 7$aEvent Studies 615 7$aBusiness Fluctuations 615 7$aCycles 615 7$aPrices, Business Fluctuations, and Cycles: General (includes Measurement and Data) 615 7$aLabor Force and Employment, Size, and Structure 615 7$aGeneral Financial Markets: General (includes Measurement and Data) 615 7$aLabor Economics: General 615 7$aWages, Compensation, and Labor Costs: General 615 7$aEconomic growth 615 7$aLabour 615 7$aincome economics 615 7$aFinance 615 7$aBusiness cycles 615 7$aLabor force 615 7$aStock markets 615 7$aWages 615 7$aFinancial markets 615 7$aLabor market 615 7$aStock exchanges 615 7$aLabor economics 676 $a331.137 700 $aAgarwal$b Ruchir$01450647 701 $aKolev$b Julian$01450648 801 0$bDcWaIMF 906 $aBOOK 912 $a9910162944103321 996 $aStrategic Corporate Layoffs$93650129 997 $aUNINA