Workforce reductions and post-merger operating performance: The role of corporate governance

This paper examines whether corporate governance mechanisms influence the association between workforce reductions and post-acquisition operating performance. Using UK-based acquisitions, it is found that there a negative relationship employment However, results show this becomes positive when board has substantial equity ownership. suggests acquirers with higher levels of ownership make better quality layoff decisions and, thereby, achieve performance improvement subsequent to reductions. The also indicate larger size greater independence decrease effect acquisition-related on Further, our CEO duality increases Overall, suggest plays an important role in understanding