The Impact of Mergers and Acquisitions on Company Employment in the United Kingdom

Conyon, Martin and Girma, S and Thompson, S and Wright, P (2002) The Impact of Mergers and Acquisitions on Company Employment in the United Kingdom. European Economic Review, 46 (1). pp. 31-49. ISSN 0014-2921

Abstract

This paper provides a systematic empirical analysis of the effects of take-over and merger activity on firm employment in the UnitedKingdom using a specially constructed database for the period 1967–1996. Our results indicate that significant rationalisations in the use of labour occur as firms reduce joint output and increase efficiency post-merger. These effects are particularly pronounced in the case of related and especially hostile mergers.