Predicting who stays and leaves after an acquisition: a study of top managers in multinational firms

Abstract

This study adds to current explanations of executive fate following a merger or acquisition by examining how executives' perceptions of merger events determine whether they stay or leave. Results indicate that executives' perceptions of the merger announcement, interactions with the acquiring firm's top managers following the merger, and long‐term effects of the merger significantly influenced their decision to stay or leave. These perceptions could be used to correctly distinguish between stayers and leavers in almost 80 percent of the cases. In addition, perceptions created when the target company was acquired by a foreign multinational made it more likely that the executive would leave. This finding demonstrates that foreignness continues to be an important determinant of executive perceptions in cross‐national mergers and acquisitions. Copyright © 2001 John Wiley & Sons, Ltd.

Dialogue as a source of positive emotions during cross-border post-acquisition socio-cultural integration

“…Yet the involvement of Alpha Group's top management was greatly appreciated. These findings seem to confirm that managers set the tone for integration (Krug and Hegarty, 2001). …”

Understanding Executive Job Search

“…Studies that attempt to distinguish between voluntary and involuntary turnover note the difficulty in doing so in part because organizations go to substantial lengths to cover up executive dismissals (DeFond & Park 1999;Krug & Hegarty 2001;Lubatkin et al 1999). 4 Veiga (1981) used self-reported measures similar to intentions to quit as the measure of the propensity of managers to leave.…”

How to retain local senior managers in international joint ventures: The effects of alliance relationship characteristics

“…The multifaceted concept of social integration reflects social interaction, group pride, and coordination (Krug and Hegarty, 2001;Michel and Hambrick, 1992). Social integration between local managers and overseas headquarters gives local senior managers the opportunity to build close relationships and a sense of shared identification (Dutton et al, 1994).…”

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