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The dynamic impacts of M&A on employment in Japan

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  • Hiroyuki Taguchi
  • Taichi Yanagawa

Abstract

This paper provides empirical evidence on the dynamic effects of merger and acquisition (M&A) on employment in Japan. The main contributions to the gaps in existing literature are: targeting employment effects of M&A, examining them by the deal type (merger and acquisition) and by the sector (manufacturing and non-manufacturing), tracing the effects in the long term, using large dataset with 9,880 sample firms and 2,530 M&A cases for the period from 1995 to 2008, and focusing on the case of Japan. Our main findings are: the “acquisition” with the key role of “extension and growth” proved to have positive effects in the dynamic terms on target firms’ employment, mainly in manufacturing sector with high labor productivity. On the other hand, the “merger” with key function of “consolidation” turned out to have negative impacts dynamically on post-merger firms’ employment, mainly in non-manufacturing sector with low labor productivity. The strategic implication might to be that the different employment responses to M&A events between manufacturing and non-manufacturing reflect the difference in labor productivity between them, i.e. the dual structure of Japanese economy. Copyright Springer Science+Business Media, LLC. 2013

Suggested Citation

  • Hiroyuki Taguchi & Taichi Yanagawa, 2013. "The dynamic impacts of M&A on employment in Japan," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(2), pages 511-533, May.
    • Handle: RePEc:kap:jmgtgv:v:17:y:2013:i:2:p:511-533
    DOI: 10.1007/s10997-011-9187-0
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    References listed on IDEAS

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    Cited by:

    1. Choi, Jongmoo Jay & Hiraki, Takato & Landi, James A., 2014. "The value of multinationality and business group for Japanese firms," Journal of Corporate Finance, Elsevier, vol. 29(C), pages 88-110.

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    More about this item

    Keywords

    M&A; Acquisition; Merger; Dynamic employment effects; D21; M51;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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