Employment Change after Takeovers: The Role of Executive Ownership

46 Pages Posted: 9 May 2014

See all articles by Azimjon Kuvandikov

Azimjon Kuvandikov

University of Essex

Andrew Pendleton

University of York (UK)

David Higgins

University of York - The York Management School

Date Written: June 2014

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.

Suggested Citation

Kuvandikov, Azimjon and Pendleton, Andrew and Higgins, David, Employment Change after Takeovers: The Role of Executive Ownership (June 2014). British Journal of Industrial Relations, Vol. 52, Issue 2, pp. 191-236, 2014, Available at SSRN: https://ssrn.com/abstract=2434819 or http://dx.doi.org/10.1111/bjir.12012

Azimjon Kuvandikov (Contact Author)

University of Essex ( email )

Andrew Pendleton

University of York (UK) ( email )

Heslington
York YO10 5DD
United Kingdom

David Higgins

University of York - The York Management School ( email )

Sally Baldwin Buildings
Heslington
York, North Yorkshire YO10 5DD
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
1
Abstract Views
310
PlumX Metrics