Mergers and acquisitions (M&As) are an important mechanism through which technology is adopted by firms. We document patterns of labor reallocation and wage changes following M&As, consistent with the adoption of technology.
Specifically, we show target establishments invest more in technology, become less routine task intensive, employ a greater share of high-technology workers, and pay more unequal wages. We document evidence for three non-mutually exclusive mechanisms underlying this effect: differences in the ability to integrate technology efficiently; financial constraints, and agency conflicts. Moreover, the within-establishment patterns generalize to the industry-level, confirming the external validity of our findings.
We examine the role of corporate taxation and institutional quality in aligning privately optimal investments with those that are socially optimal. We...
For decades and decades, Delaware has been the undisputed leader in the market for corporate law. And yet, it is now clear that Delaware’s superiority...