M&As, Employee Costs, and Labor Reallocation

• 成果类型: Article; Early Access
• 署名作者: Lagaras, Spyridon
• 署名单位: University of Illinois System; University of Illinois Urbana-Champaign
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082; 1540-6261
• DOI: 10.1111/jofi.70065
• 发表日期: 2026-07-21
• 关键词: high wage workers; ownership changes; PRIVATE EQUITY; job search; MARKET; mergers; PRODUCTIVITY; performance; INEQUALITY; TRADE

摘要

Mergers are associated with large and persistent earnings declines for incumbent employees in target firms. Linking employer-employee administrative data with information on merger activity in Brazil, I find the negative effects concentrate on employees who exit target firms and reflect displacement in the short run and wage declines in the long run. Low-skilled, managerial, and older employees fare worse. Overall, I conclude that mergers are followed by substantial reallocation costs reflecting losses of firm-specific wage premiums, matching inefficiencies, and industry-specific human capital depreciation, with employees transitioning to lower paying firms considered to be of lower productivity and employment value.