Research notes and commentaries assessing the effects of mergers and acquisitions on firm performance, plant productivity, and workers: New evidence from matched employer-employee data

Donald Siegel, Kenneth L. Simons

Research output: Contribution to journalReview article

52 Citations (Scopus)

Abstract

Empirical studies of mergers and acquisitions typically focus on firm-level financial performance. In contrast, we use human capital theory to model these events as transactions that simultaneously have cross-level, real effects on workers, plants, and firms. Our empirical analysis is based on longitudinal, linked employer-employee data for virtually all Swedish manufacturing firms and employees. We find that mergers and acquisitions enhance plant productivity, although they also result in the downsizing of establishments and firms. Firm performance does not decline in the aftermath of these ownership changes. We conclude that such transactions constitute a mechanism for improving the sorting and matching of plants and workers to more efficient uses.

Original languageEnglish (US)
Pages (from-to)903-916
Number of pages14
JournalStrategic Management Journal
Volume31
Issue number8
DOIs
StatePublished - Aug 1 2010
Externally publishedYes

Fingerprint

Mergers and acquisitions
Matched employer-employee data
Workers
Productivity
Firm performance
Employees
Financial performance
Manufacturing firms
Sorting
Downsizing
Empirical analysis
Empirical study
Linked employer-employee data
Ownership change
Human capital theory

Keywords

  • Compensation
  • Downsizing
  • Human capital
  • Matched employer-employee data
  • Mergers and acquisitions
  • Total factor productivity

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management

Cite this

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