A Model Of Manufacturing Sector Investment And Employment Discisions PDF Download

This thesis in the format of an exploratory study analyzes theinvestments of 1006 companies announcing investments intomanufacturing plants on a global scale from 1984-2017. Motivated byKevin B. Hendricks' and Vinod R. Singhal's paper on 'The effect of supplychain glitches on shareholder wealth' (2003) the findings presented inthis thesis create new insights into the development of the sums investedinto manufacturing facilities, the impact of investments on the number ofjobs created and the development of costs for new job creation in themanufacturing industry.The thesis includes investment announcements in four differentindustries: automotive, pharmaceuticals, chemical and the fast-movingconsumer goods industry (FMCG). The methodology used for dataanalysis is the multiple linear regression model.The analysis suggests, that the number of jobs is decreasing over timefrom 2008-2017, compared to a base period of 1984-2007 (representing12 % of the investments). Furthermore, the capital expenditures forinvestments are decreasing in the same period (2008-2017),contradictory to the hypothesis stated and opposing to the commonunderstanding. The hypothesis stating that companies are investing morein new manufacturing plants in the last 10 years has to be rejected,according to our data. In addition to that the, data shows that it becomesmore expensive for companies to create jobs in the most recent years.Finally, the results are discussed and opportunities for future research aswell as limitations are presented.