Employment Effects of Acquisitions: Evidence from Acquired European Firms

Oberhofer, Harald
May 2013
Review of Industrial Organization;May2013, Vol. 42 Issue 3, p345
Academic Journal
This paper examines the employment effects of acquisitions for acquired European firms, taking non-random selection of acquisition targets explicitly into account. Following the empirical firm growth literature and theories put forward in the mergers and acquisition (M&A) literature, we control for convergence dynamics in firm size and distinguish between different types of acquisitions. Empirically, we estimate an endogenous treatment model using accounting data for a newly created sample of acquired and non-acquired European firms. Our results reveal positive employment effects for different types of acquisitions indicating that M&As likely induce efficiency gains.


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