| dc.description.abstract | This study utilizes secondary data analysis to explore the impact of downsizing on performance in Taiwanese listed and Over-The-Counter (OTC) companies from 2019 to 2021, using organizational justice as the primary theoretical framework. Three hypotheses were formulated: first, in financially distressed companies, the impact of downsizing on company performance compared to those that did not downsize; second, in financially distressed companies, the impact of salary adjustment with rates higher than the industry average on company performance compared to other financially distressed companies; third, whether salary adjustment moderate the relationship between downsizing and company performance in financially distressed companies.
Through logistic regression analysis, the study finds that downsizing in financially distressed companies significantly enhances performance. Moreover, in financially distressed companies, those implementing salary adjustment with rates higher than the industry average experience even greater performance improvements. Lastly, for financially distressed companies, salary adjustment moderates the impact of downsizing on performance, reinforcing the positive moderating impact of organizational justice on downsizing and performance, thereby alleviating the effects of employee job stress and psychological contract breach.
Overall, this study provides managerial insights for companies facing financial difficulties and offers preliminary evidence on the effects of downsizing, salary adjustment, and other human resource management strategies on company performance. | en_US |