PhD Opportunity: Employment Protection & Firm-level Employee Layoffs

Project summary: This project aims to examine determinants of firm-level layoff decisions and investor perceptions to layoff announcements and assess the role of CEO political connections and state employee protection.

Deadline: 3 April 2024

Duration: 36 months

Funding details: Fully-funded scholarship for three years covers all university tuition fees (at UK level) and an annual tax-free stipend. International students are also eligible to apply, but they will need to find other funding sources to cover the difference between the home and international tuition fees. Exceptional international candidates may be provided funding for this difference.  

Eligibility:

The applicants should:

• be highly motivated individuals with an excellent academic background
• have a very strong quantitative background and must hold a BSc in Finance or Economics, or a related subject, or an MSc in Finance or Economics, or equivalent 

Project details:

The frequency of employee layoffs has increased over time despite evidence that layoffs do not benefit individual companies. The rising risk of unemployment, social unrest and political polarization, is in the top-10 risks in the World Economic Forum’s 2023 Global Risks Report.

Layoffs have wider adverse effects such as stress and mortality. To mitigate the negative effects of layoffs, regional and national governments have legislated on protections to employees from sudden mass layoffs. For instance, the OECD provides a summary of the variation in employment protection laws across countries.

Layoffs also have negative reputational effects for a company and its CEO and carry a political cost. This is why managers make corporate employment decisions that help politicians in their re-election efforts but negatively affect firm profitability.

This project will examine the role of political connections of company CEOs and political protections of employee rights in the propensity of layoffs and the stock price response to layoff announcements. 

Contact: Dr Patrick McColgan

To apply for this role, please click on the 'Apply' button above.

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