How Do Acquisitions Affect the Mental Health of Employees?

Ramin Baghai (), Marieke Bos, Laurent Bach and Rui Silva
Additional contact information
Ramin Baghai: Mistra Center for Sustainable Markets (Misum), Postal: Stockholm School of Economics, P.O. Box 6501, SE-113 83 Stockholm, Sweden
Marieke Bos: Mistra Center for Sustainable Markets (Misum), Postal: Stockholm School of Economics, P.O. Box 6501, SE-113 83 Stockholm, Sweden
Rui Silva: Nova School of Business and Economics

No 2021-2, Misum Working Paper Series from Stockholm School of Economics, Mistra Center for Sustainable Markets (Misum)

Abstract: Using employer-employee level data linked to individual health records, we document that the incidence of stress, anxiety, depression, psychiatric medication usage, and even suicide increase following acquisitions. These effects are prevalent among employees from both targets and acquirers, in weak as well as in growing, profitable firms. Employees who experience negative career developments within the merging firms, ’blue-collar’ workers, and employees with lower cognitive and non-cognitive skills are most affected. A variety of tests address endogeneity concerns, including an analysis exploiting failed mergers. Our findings point to mental illness as a significant non-pecuniary cost of acquisitions.

Keywords: Mergers and Acquisitions; Corporate Restructuring; Mental Health; Mental Illness (search for similar items in EconPapers)
JEL-codes: G34 J81 L23 (search for similar items in EconPapers)
Pages: 69 pages
Date: 2021-10-26
New Economics Papers: this item is included in nep-hea, nep-hrm, nep-lab and nep-neu
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: How Do Acquisitions Affect the Mental Health of Employees? (2021)
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