Not surprisingly, companies that were hit hard by the pandemic downturn were much more likely to lay off employees, even if those companies had been in strong financial shape beforehand. But hard-hit companies that benefited from strong cash reserves were only half as likely as their financially weaker counterparts to impose layoffs.
“If companies had cash reserves, they seemed willing to use some of them to help their employees,” Lester says.
At least as important, however, was whether a company had previously made a strong commitment to treat its workers well. In fact, companies with strong finances but weak commitments to workers were more likely to lay off employees than were companies with similarly strong finances and strong commitments to their workforce.
New Constructs Announces New Study From Harvard Business School & MIT Sloan that Reveals Problems with Fundamental Data & Research
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NASHVILLE, Tenn., March 3, 2021 /PRNewswire/ New Constructs (NC), the leading provider of reliable fundamental research on private and public businesses, announced revelations from a new paper forthcoming in The Journal of Financial Economics, a top peer-reviewed journal.
Discovery of a novel database that enables investors to overcome those flaws.
New, proprietary measures of Core Earnings and Earnings Distortion materially improve stock picking and forecasting of profits. Most investors had no way of knowing about the problems with their fundamental data before this paper was published, said David Trainer, CEO of New Constructs. Now, they can see the magnitude of the problem and the importance of fixing it, especially fiduciaries.
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New Constructs Fundamental Data Proven Superior by Paper Forthcoming in the Journal of Financial Economics
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NASHVILLE, Tenn., Jan. 26, 2021 /PRNewswire/ New Constructs (NC), the leading provider of insights into the fundamentals and valuation of private and public businesses, announced that The Journal of Financial Economics accepted for publication, Core Earnings: New Data & Evidence, a paper that features the superiority of its novel proprietary fundamental data.
This paper proves:
There is no rival for New Constructs materially superior fundamental data and earnings models.
For the first time ever, New Constructs novel database of unusual gains/losses enables investors to adjust reported or consensus metrics and know the truth about corporate profitability at scale.