Plant-closing decisions and the market value of the firm

David W. Blackwell, M. Wayne Marr, Michael F. Spivey

Research output: Contribution to journalArticlepeer-review

90 Scopus citations


We investigate the underlying causes and the announcement effects of plant closings. The closing in our sample do not appear related to takeover activity. Instead, they appear motivated by declining firm profitability. Firms announcing closings have lower earnings than market or industry medians; earnings typically improve slightly after the announcement. We find a negative stock-market reaction to plant-closing announcements.

Original languageEnglish
Pages (from-to)277-288
Number of pages12
JournalJournal of Financial Economics
Issue number2
StatePublished - Aug 1990

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics
  • Strategy and Management


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