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Employment change after takeovers: the role of executive ownership

Kuvandikov, A.; Pendleton, A.; Higgins, D.

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Authors

A. Kuvandikov

A. Pendleton

D. Higgins



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.

Citation

Kuvandikov, A., Pendleton, A., & Higgins, D. (2014). Employment change after takeovers: the role of executive ownership. British Journal of Industrial Relations, 52(2), 191-236. https://doi.org/10.1111/bjir.12012

Journal Article Type Article
Acceptance Date Nov 3, 2012
Online Publication Date Mar 1, 2013
Publication Date Jun 1, 2014
Deposit Date Jan 26, 2015
Publicly Available Date Feb 11, 2015
Journal British Journal of Industrial Relations
Print ISSN 0007-1080
Electronic ISSN 1467-8543
Publisher Wiley
Peer Reviewed Peer Reviewed
Volume 52
Issue 2
Pages 191-236
DOI https://doi.org/10.1111/bjir.12012

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Copyright Statement
This is the accepted version of the following article: Kuvandikov, A., Pendleton, A. and Higgins, D. (2014), Employment Change after Takeovers: The Role of Executive Ownership. British Journal of Industrial Relations, 52 (2): 191-236, which has been published in final form at http://dx.doi.org/10.1111/bjir.12012. This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.




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