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The Effect Of Advance Notice Of Plant Closings On Firm Value

Sharon K. Clinebell, John M. Clinebell

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The issue of workers displaced because of plant closings gained prominence in the 1980’S because of their growing numbers. With the increased attention focused on plant closings, the topic of advance notice has also gained prominence. This paper examines the issue of advance notice for plant closings and its effect on firm value. The findings of this study indicate that longer periods of advance notice have significant negative effects on firm value.