Co-determination and Merger Incentives from Transfers of Wealth: Firm Owners vs. Workers
AbstractWhen workers can capture rents from their influence on corporate decisions, mergers can become a device to generate transfers of wealth. This paper examines the merger incentives from these transfers of wealth. It is found that worker influence increases merger profitability, in line with the owners’ incentive to use mergers to reduce the rents captured by workers. In contrast, the workers’ merger incentives are shown to be decreasing in their own degree of influence on the merger decision, in line with the view according to which workers can be used by incumbent managers as a defensive instrument in acquisitions.
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Bibliographic InfoArticle provided by Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies in its journal AUCO Czech Economic Review.
Volume (Year): 4 (2010)
Issue (Month): 2 (June)
Find related papers by JEL classification:
- G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
- J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
- L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
- P14 - Economic Systems - - Capitalist Systems - - - Property Rights
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Morton I. Kamien & Israel Zang, 1988.
"The Limits of Monopolization Through Acquisition,"
802, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Gonzalez-Maestre, Miguel & Lopez-Cunat, Javier, 2001.
"Delegation and mergers in oligopoly,"
International Journal of Industrial Organization,
Elsevier, vol. 19(8), pages 1263-1279, September.
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