Evaluating the Characteristics of Corporate Boards Associated with Layoff Decisions

22 Pages Posted: 6 Feb 2007

See all articles by Alfred Yawson

Alfred Yawson

University of Adelaide; Financial Research Network (FIRN)

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The paper evaluates the characteristics of corporate boards associated with layoff decisions using a large sample of UK firms suffering performance declines over the period 1994 to 2003. The results show that firms are less likely to respond to performance declines with employee layoffs when they have large boards. Further analysis shows that layoff decisions are positively associated with the proportion of outside directors and directors' remuneration. The findings provide some support to the recommendations of the Cadbury Report (1992) and Higgs Review (2003) on the importance of the structure and composition of board of directors in the corporate governance process.

Keywords: Corporate governance, corporate restructuring, directors, employee layoffs

JEL Classification: G34

Suggested Citation

Yawson, Alfred, Evaluating the Characteristics of Corporate Boards Associated with Layoff Decisions. Corporate Governance: An International Review, Vol. 14, No. 2, pp. 75-84, March 2006, Available at SSRN: https://ssrn.com/abstract=960880

Alfred Yawson (Contact Author)

University of Adelaide ( email )

No 233 North Terrace
Adelaide, South Australia 5005

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane

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