Employees

Presentation

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.

March 28 2024

Pages