According to a study examining restructuring's effects on profitability and stock returns of 500 representative companies listed on the NYSE,in terms of profitability,which of the following categories of companies generated lower returns on assets in the year prior to the announcement of layoffs,the year when layoffs occurred,and in the two subsequent years on a relative basis?
A) Asset upsizers
B) Stable employers
C) Downsizers
D) Upsizers

Question

Quizplus · Accepted Answer

The study found that downsizers generated lower returns on assets in the year prior to the announcement of layoffs, the year when layoffs occurred, and in the two subsequent years on a relative basis.

According to a Study Examining Restructuring's Effects on Profitability and Stock