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by x3n0ph3n3 783 days ago
There absolutely is causative change in share prices. Investors love hearing that costs are being reduced.
2 comments

https://www.jstor.org/stable/3088174 : "Results show that layoff announcements trigger negative returns for both U.S. and Japanese firms. Specifically, layoff announcements of U.S. firms are associated with a negative 1.78 percent abnormal return ..."

https://onlinelibrary.wiley.com/doi/10.1111/1748-8583.12532 : "They find that investors do not react if a layoff announcement signals proactive management (e.g., cost cutting) but penalize the firm if the layoff indicates reactive management (e.g., decline in demand). The penalty is also positively associated with layoff size but unrelated to firm size. Further, investors have become less punitive over time, or if its stock is traded on an exchange in civil law (vs. common law) country. "

> On what planet have you been living on? There absolutely is.

First, you could have phrased this differently and been less aggressive. Edit: I see you edited your comment after the fact. Good job.

But more importantly, has their been a study on layoffs like this and long-term health of companies? By the metric of the stock price, Boeing is doing better than it was 20, 30, 40+ years ago. Yes, they've have some problems, but the modern Boeing is, according to the share prices, more valuable and therefore a better company.

So, I'm also genuinely curious about if research has been done on this outside of immediate stock price and more about general strength of companies.

Is it? You need to normalize the price vs the market or industry. How has Boeing done compared to Airbus over the last 20 years? How about vs the market at large?