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Do Hostile Mergers Destroy Jobs?

Conyon, Martin and Girma, S and Thompson, S and Wright, P (2001) Do Hostile Mergers Destroy Jobs? Journal of Economic Behaviour and Organisation, 45 (4). pp. 427-440. ISSN 0167-2681

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Abstract

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.

Item Type: Article
Journal or Publication Title: Journal of Economic Behaviour and Organisation
Uncontrolled Keywords: Mergers ; Acquisitions ; Panel data ; Labour demand
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
Departments: Lancaster University Management School > Accounting & Finance
ID Code: 53987
Deposited By: ep_importer_pure
Deposited On: 26 Jun 2012 10:22
Refereed?: Yes
Published?: Published
Last Modified: 26 Jul 2012 20:20
Identification Number:
URI: http://eprints.lancs.ac.uk/id/eprint/53987

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