Determinants of Layoff Announcements Following M & As : An Empirical Investigation  

Oleh:

K. C. O'Shaughnessy ; Flanagan, David J.

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: Strategic Management Journal vol. 19 no. 10 (1998), page 989-999.
Topik: investigations; mergers and acquisition; layoffs; relatedness

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: SS30.2 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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Isi artikel

It is often argued that mergers and acquisitions (M & As) lead to employee layoffs. This paper examines factors that influence the probability that a layoff announcement will follow an M & A. A sample of 136 large M & As, involving U. S. targets that occured between 1989 and 1993 is analyzed. Analyses of this sample indicate that the probability of a layoff announcement is higher if the firms involved in the transaction are related. The probability that a layoff will be announced was not changed when the acquires was a non - U. S. firm (cross - border transactions). Target revenue per employee before the M & A is negatively related to the probability that a layoff was announced. Target financial performance prior to the transaction and use of borrowed funds to finance the merger were not found to have an impact on the probability that a layoff will be announced.

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