Study of how downsizing impacts spainish firms, from an institutional and economical approach
DOI:
https://doi.org/10.51302/rtss.2018.1572Keywords:
downsizing, institutional theory, financial results, reorganizationAbstract
In a framework in which numerous economic news relate to reorganization and restructuring plans in which many business organizations are involved, it is interesting to propose a process of reflection and analysis on how these processes affect the economic results of the companies. The purpose of this paper is to address the effect that downsizing or downsizing strategies carried out by the company’s management have had on the business results in Spanish companies because of the financial crisis that began in 2007 from an institutional and economical approach. Using the results of this study we will analyze the strategy in a special context, studied through the interaction of both perspectives: economic and institutional. With the analysis of panel data for the period 2002-2013, there is evidence of positive effects of downsizing on the economic performance of large Spanish companies, when this strategy is implemented in a situation of economic downturn or when this strategy is widely extended in the sector to which the company belongs.
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