The impact of ownership changes: a view from labor markets

McGuckin, Robert H.; Nguyen, Sang V.

doi:10.1016/s0167-7187(00)00092-8

Cited by 121 publications

(77 citation statements)

References 17 publications

(19 reference statements)

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“…'costs of goods sold' and 'costs of employees'), we even note a small, but significant increase in the first few years after deal completion. The abnormal rise in the costs of employees as of the acquisition is remarkable, yet in line with the findings by McGuckin and Nguyen (2001). The latter scholars provide evidence of an increase in plant-level employment and wages following ownership restructurings.…”

Section: Synergy Realization After the Acquisitionsupporting

confidence: 74%

Sources of Synergy Realization in Mergers and Acquisitions: Empirical Evidence from Non-Serial Acquirers in Europe

Huyghebaert¹,

Luypaert²

2013

International Journal of Financial Research

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We empirically investigate the sources, magnitude, and timing of synergy realization for 293 M&As by non-serial listed acquirers in Europe during [1997][1998][1999][2000][2001][2002][2003][2004][2005]. In contrast to much of the existing literature, we find that the shareholders of non-serial acquirers gain significantly upon deal announcement. Next, we unravel the various sources of M&A value creation, in particular operating synergies resulting either from revenue enhancement or from savings on operating costs and investments, and financial synergies. Compared to its non-combining industry peers, the median combined sample firm reports a 4.92% larger sales growth rate by the third post-deal year. Operating costs relative to sales are reduced by an extra 1.53% over this same window. In leverage-increasing acquisitions, the median combined firm realizes a persistent 6.09% rise in its long-term debt ratio. Finally, our multivariate regression results point out that non-serial acquirers with a larger market-to-book ratio achieve more extensive operating synergies.

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Section: Synergy Realization After the Acquisitionsupporting

confidence: 74%

Sources of Synergy Realization in Mergers and Acquisitions: Empirical Evidence from Non-Serial Acquirers in Europe

Huyghebaert¹,

Luypaert²

2013

International Journal of Financial Research

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“…In all three matched sample estimates, the post-divestment wage level is statistically insignificantly different from the pre-acquisition time period. These results strengthen the interpretation that the estimated foreign acquisition effects do not simply reflect the effects of acquisition (as analyzed in research on mergers and acquisitions, including Lichtenberg and Siegel 1990;McGuckin and Nguyen 2001;Siegel, Simons, and Lindstrom 2009), but instead imply systematically different behavior of foreign and domestic owners.…”

Section: Estimates Of the Average Effect Of Fdi On Wagessupporting

confidence: 74%

FDI and Wages: Evidence from Firm-Level and Linked Employer-Employee Data in Hungary, 1986-2008

2012

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FDI and Wages: Evidence from Firm-Level and LinkedEmployer-Employee Data in Hungary, 1986-2008 1We estimate the wage effects of foreign direct investment (FDI) with universal firm-level and linked employer-employee panel data containing 4,926 foreign acquisitions in Hungary.Matching on pre-acquisition data and controlling for fixed effects for firms and detailed worker groups, we find 12-28 percent effects on average wages. The wage effect mostly reverses for 983 foreign acquisitions later divested to domestic owners. We find positive effects for all worker types, occupations, and wage quantiles. The evidence implies little role for either measurement problems or residual selection, but suggests a strong cross-firm association of FDI wage premia with similar differentials in productivity.JEL Classification: F23, F66, J31

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“…This may result in the latter being excessively discounted in the event of an outsider-led takeover, especially as the costs of such a discounting are often not immediately apparent (Cappelli, 1995). Again, research suggests that takeovers -especially hostile ones -may be associated with a deterioration in job security, and/or the terms and conditions of employment (Lichtenberg and Siegel, 1990;McGuckin and Nguyen, 2001).…”

Section: Human Resources and Private Equitymentioning

confidence: 99%

Private equity and human resource management: An emerging agenda

Wood

Wright

2010

Human Relations

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In this article we define and explain private equity, with particular emphasis on the heterogeneity of the phenomenon. We consider different theoretical perspectives of relevance to the study of private equity buyouts. In particular, we distinguish between approaches that take a zerosum perspective (rational choice and financialization perspectives) and those with a more nuanced, complementary viewpoint (heterodox institutional and theories of action and structure perspectives). We discuss private equity in historical perspective. We then summarize the articles in this special section. Finally, we identify an agenda for further research that focuses upon employee relations and human resource aspects of private equity buyouts. Keywords comparative HRM, corporate governance, finance and HRM, private equityThis special section explores new approaches and perspectives on the effects of private equity buyouts on the employment contract and work organization. There is a considerable body of literature on the rise of private equity takeovers of mature organizations and implications for shareholders. Extensive studies in finance and economics over two decades have identified significant performance gains in private equity funds and the portfolio companies in which they invest (Cummings et al., 2007;Kaplan and

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The impact of ownership changes: a view from labor markets

Cited by 121 publications

References 17 publications

Sources of Synergy Realization in Mergers and Acquisitions: Empirical Evidence from Non-Serial Acquirers in Europe

Sources of Synergy Realization in Mergers and Acquisitions: Empirical Evidence from Non-Serial Acquirers in Europe

FDI and Wages: Evidence from Firm-Level and Linked Employer-Employee Data in Hungary, 1986-2008

Private equity and human resource management: An emerging agenda

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