IDEAS home Printed from https://ideas.repec.org/p/wrc/ymswp1/57(4).html
   My bibliography  Save this paper

Labour demand and wage effects of takeovers that involve employee layoffs

Author

Listed:
  • Kuvandikov, Azimjon

Abstract

The issue of whether mergers and acquisitions lead to economic efficiency is divisive, as is confirmed by mixed empirical evidence. There is no general agreement on the dominating motive for such transactions. Consequently, the sources of takeover gains are unknown. Synergy realisation and management disciplining have been suggested as the main driving forces of efficiency improvements. However, it is not well understood how such factors may create value. One suggestion is that better labour management and more efficient labour usage reduces demand for labour during post-takeover years (Conyon et al., 2002). Profit maximising managers may undertake workforce reductions to realise the synergetic and better labour management gains created by mergers. However, any workforce reduction should be undertaken on the basis of the level of decline in labour demand. This implies that decline in labour demand should be steeper in mergers that involve employee layoffs than in mergers that do not.

Suggested Citation

  • Kuvandikov, Azimjon, 2010. "Labour demand and wage effects of takeovers that involve employee layoffs," The York Management School Working Papers 57(4), The York Management School, University of York.
  • Handle: RePEc:wrc:ymswp1:57(4)
    as

    Download full text from publisher

    File URL: http://eprints.whiterose.ac.uk/11241/1/57Azimjon_working_paper_2010_4.pdf
    Download Restriction: no

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wrc:ymswp1:57(4). See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (White Rose Research Online) or (The York Management School). General contact details of provider: http://edirc.repec.org/data/msyoruk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.