This study investigates the employment consequences of private equity acquisitions, in particular institutional buy-outs (IBOs), in the UK. It involves a pre- and post-acquisition analysis of employment and performance characteristics for a...Read more
We hypothesize that labor participation in governance helps improve risk sharing between employees and employers. It provides an ex-post mechanism to enforce implicit insurance contracts protecting employees against adverse shocks. Results based...Read more
We study the impact of leveraged buyouts in Germany on employees' wages, employment, and career paths. We contrast different views of buyouts, which see LBOs as facilitators of organizational and technological modernization, or as vehicles for...Read more
Extending the theories of employee incentives and inalienability of human capital, we investigate the link between a firm‘s engagement in employee relations and the returns to shareholders around mergers and acquisitions (M&As). Using firm-level data on employee-engagement in an international sample of 4,565 M&A deals from 48 countries, we find that an acquirer‘s employee-engagement – especially in terms of monetary incentives – is positively related to shareholder returns in domestic deals, but this relationship turns negative in cross-border deals.