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Employment Effects of Acquisitions: Evidence from Acquired European Firms

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  • Harald Oberhofer

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Abstract

This paper examines the employment effects of acquisitions for acquired European firms, taking non-random selection of acquisition targets explicitly into account. Following the empirical firm growth literature and theories put forward in the mergers and acquisition (M&A) literature, we control for convergence dynamics in firm size and distinguish between different types of acquisitions. Empirically, we estimate an endogenous treatment model using accounting data for a newly created sample of acquired and non-acquired European firms. Our results reveal positive employment effects for different types of acquisitions indicating that M&As likely induce efficiency gains. Copyright Springer Science+Business Media, LLC. 2013

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Bibliographic Info

Article provided by Springer in its journal Review of Industrial Organization.

Volume (Year): 42 (2013)
Issue (Month): 3 (May)
Pages: 345-363

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Handle: RePEc:kap:revind:v:42:y:2013:i:3:p:345-363

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Web page: http://www.springerlink.com/link.asp?id=100336

Related research

Keywords: Merger and acquisitions; Employment effects; Firm growth; Gibrat’s law; Endogenous treatment model;

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Cited by:
  1. Crespo Cuaresma, Jesus & Oberhofer, Harald & Vincelette, Gallina A., 2014. "Institutional Barriers and Job Creation in Central and Eastern Europe," Working Papers in Economics and Finance 2014-1, University of Salzburg.
  2. Harald Oberhofer & Matthias Stöckl & Hannes Winner, 2012. "The Wage Premium of Globalisation: Evidence from European Mergers and Acquisitions," WIFO Working Papers 416, WIFO.
  3. Furlan, Benjamin & Oberhofer, Harald & Winner , Hannes, 2014. "A Note on Merger and Acquisition Evaluation," Working Papers in Economics and Finance 2014-2, University of Salzburg.

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