Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Do Hostile Mergers Destroy Jobs?
AU - Conyon, Martin
AU - Girma, S
AU - Thompson, S
AU - Wright, P
PY - 2001/8
Y1 - 2001/8
N2 - This paper provides a systematic empirical analysis of the employment effects of hostile takeovers in the United Kingdom for the period 1983–1996. It finds no evidence for distinguishing between friendly and hostile acquisitions in terms of their impact on labour demand. Indeed, each type of transaction appears to have an immediate negative impact on labour demand, equivalent to about 7.5 percent of the pre-merger level. However, the paper does find that the absolute number of employees falls substantially, along with output, in the hostilemerger case alone. This appears to be the consequence of a high level of post-merger divestment that distinguishes hostile transactions.
AB - This paper provides a systematic empirical analysis of the employment effects of hostile takeovers in the United Kingdom for the period 1983–1996. It finds no evidence for distinguishing between friendly and hostile acquisitions in terms of their impact on labour demand. Indeed, each type of transaction appears to have an immediate negative impact on labour demand, equivalent to about 7.5 percent of the pre-merger level. However, the paper does find that the absolute number of employees falls substantially, along with output, in the hostilemerger case alone. This appears to be the consequence of a high level of post-merger divestment that distinguishes hostile transactions.
KW - Mergers
KW - Acquisitions
KW - Panel data
KW - Labour demand
U2 - 10.1016/S0167-2681(01)00155-X
DO - 10.1016/S0167-2681(01)00155-X
M3 - Journal article
VL - 45
SP - 427
EP - 440
JO - Journal of Economic Behavior and Organization
JF - Journal of Economic Behavior and Organization
SN - 0167-2681
IS - 4
ER -