Date of Conferral

2-10-2025

Degree

Doctor of Business Administration (D.B.A.)

School

Business Administration

Advisor

William Stokes

Abstract

Business owners and investors are concerned that layoff announcements and company age may negatively impact earnings per share (EPS), reducing investor confidence and ultimately lowering stock performance. This decline in stock value can affect a company’s ability to attract investment and sustain long-term growth. Grounded in the prospect theory, the purpose of this quantitative correlational study was to examine the relationship between the percentage of layoffs, company age, and earnings per share. The participants were 107 technology firms with at least 1,000 employees on the NASDAQ Stock Index that initiated layoffs during the 2021–2022 calendar years. The data was collected from online financial databases, including IBISWorld and Layoffs.fyi. The results of the multiple linear regression were significant, F(2, 104) = 10.579, p < .001, adj. R2 = .153. In the final model, two predictors were significant, percentage of layoffs (t = -2.656, p < .009) and company age (t = 2.538, p < .013). A key recommendation is for business owners to develop training programs and investor communication strategies to equip managers and leaders with a deeper understanding of the financial and market implications of layoff announcements. The implications for positive social change include the potential to strengthen relationships between businesses and their communities through educational programs on the layoff process. These programs can reduce uncertainty for employees and their families, better prepare them for career transitions, and enhance trust between businesses and the community.

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