Employee Rights and Acquisitions

The Story of Mergers and Acquisitions: Using Narrative Theory to Understand the Uncertainty of Organizational Change

This paper examines the influence of communication form on employee uncertainty during mergers and acquisitions (M&As). Specifically, the author uses narrative theory to analyze how narrative organizational communication affects the three components of uncertainty – decreased predictive, explanatory, and descriptive ability. It is hypothesized that employees whose organizations use narrative M&...

Evaluating the Effects of Mergers and Acquisitions on Employees: Evidence from Matched Employer-Employee Data

Will I Get Paid? Employee Stock Options and Mergers and Acquisitions∗

We analyze how rank-and-file employee compensation contracts of target firms affect the negotiations of merger terms and merger outcomes. Using unique data from merger agreements, we document that in 80% of all deals at least some of the target’s employee stock options are canceled by the acquirer. Employees lose approximately half of their option value in the average M&A deal. By exploiting th...

Acquisitions, Multinationals and Wage Dispersion

Multinational firms pay relatively high wages. Less is known about the wage structure within multinational and non-multinational firms. We examine the impact of acquisitions on wage dispersion in Sweden using a large matched employer-employee data set. Foreign acquisitions of Swedish firms increase wage dispersion by increasing wages for high-skilled workers. The positive impact is concentrated...

Cross Border Mergers and Acquisitions by Indian firms-An Analysis of Pre and Post Merger performance

The corporate sector all over the world is restructuring its operations through different types  of  consolidation  strategies  like  mergers  and  acquisitions  in  order  to  face challenges  posed  by  the  new  pattern  of  globalization,  which  has  led  to  the  greater integration of national and international markets.. The intensity of cross-border operations recorded an unprecedented ...