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| Volume 10, No. 1,
April 2011 |
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Downsizing and Profitability:
An Empirical Study |
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of Portuguese Firms in
1993–2005 |
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| Tânia Marques |
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School of Technology and
Management, Management for Sustainability Research Center,
Polytechnic Institute of Leiria, Portugal |
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Isabel Suárez González |
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Department of Business
Administration and Management, University of Salamanca, Spain |
| Pedro Cruz |
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ISG Business School, CIGEST/ID+
Research Units, Lisbon/Aveiro, Portugal |
| Manuel Portugal Ferreira |
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Polytechnic Institute of
Leiria, GlobADVANTAGE—Center of Research in International Business &
Strategy, Portugal |
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| Abstract |
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Although firms may resort to downsizing
strategies to improve financial performance, the actual outcome of
downsizing is inconclusive. Testing a sample of 1,357 Portuguese
firms, we conclude that firms that downsize tend to continue to
underperform compared to those that do not downsize. |
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Key words:
downsizing effects; downsizing performance; financial performance;
Portugal |
| JEL
classification:
G34; M19 |
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