Restructuring for Shareholder Value and its Implications for Labour

Posted: 18 Apr 2001

See all articles by Julie Froud

Julie Froud

University of Manchester - Division of Accounting and Finance

Karyn Williams

Unaffiliated Authors

S. Johal

University of London - Royal Holloway College

Colin Haslam

University of Hertfordshire

Abstract

This paper provides an accounting analysis of the implications for labour of restructuring for shareholder value. It presents argument and evidence from the UK which suggests that activity-specific limits on cost recovery constrain returns on capital. These constraints encourage restructuring which aims to improve returns on capital through the reduction of labour costs. If labour loses directly, longer-term outcomes are more complex, as some workers who retain jobs may gain, and much depends on the macro context. Overall, in the context of present-day capitalism, serial restructuring is likely to be a negative process for labour that generates transitory benefits for capital.

Keywords: shareholder value, corporate restructuring, labour, accounting

Suggested Citation

Froud, Julie and Williams, Karyn and Johal, S. and Haslam, Colin J., Restructuring for Shareholder Value and its Implications for Labour. Cambridge Journal of Economics, Vol. 24, No. 6, November 2000, Available at SSRN: https://ssrn.com/abstract=246340

Julie Froud (Contact Author)

University of Manchester - Division of Accounting and Finance ( email )

Manchester
United Kingdom

Karyn Williams

Unaffiliated Authors ( email )

United States

S. Johal

University of London - Royal Holloway College

Senate House
Malet Street
London, TW20 0EX
United Kingdom

Colin J. Haslam

University of Hertfordshire ( email )

Hertford Herts, SG13 8QF
United Kingdom

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