Employment Change after Takeovers: The Role of Executive Ownership

Azimjon Kuvandikov, Andrew Pendleton and David Higgins

British Journal of Industrial Relations, 2014, vol. 52, issue 2, 191-236

Abstract: The article examines the impact of executive ownership and other ownership and governance factors on employment change after takeovers. Drawing on a dataset of 235 takeovers, the results show that there is a reduction in employment in just over 50 per cent of the sample. Higher levels of executive share ownership are associated with lower probabilities of employee layoffs post-takeover, and there is a positive relationship between executive ownership and employment growth. The effect of executive options on employment change is generally insignificant, as are the effects of other features of ownership and governance. The evidence suggests that executives with higher levels of ownership tend to mount takeovers of better-performing firms and to implement takeovers aimed at growth.

Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://hdl.handle.net/10.1111/bjir.12012 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:brjirl:v:52:y:2014:i:2:p:191-236

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0007-1080

Access Statistics for this article

British Journal of Industrial Relations is currently edited by Edmund Heery

More articles in British Journal of Industrial Relations from London School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().