Corporate Takeovers and Labor Restructuring

72 Pages Posted: 1 Aug 2018 Last revised: 9 Nov 2021

See all articles by Spyridon Lagaras

Spyridon Lagaras

University of Pittsburgh, Katz Graduate Business School

Date Written: June 30, 2017

Abstract

Using detailed employer-employee administrative data linked with manually-collected information on merger activity in Brazil, I create input-based measures of technological and organizational changes to examine the relation between firms' human capital composition and mergers. I find that firms with larger shares of high-skilled and innovation-intensive employees participate in mergers. Occupational proximity is an important driver of the transaction incidence. Examining post-merger human capital compositional shifts in target firms, I provide evidence on efficiency-seeking restructuring through technology adoption, investment in innovation and cost synergies. I find support for knowledge transfers, management changes and scale economies as potential mechanisms behind these shifts.

Keywords: Mergers and Acquisitions, Reorganization, Human Capital, Labor Composition, Occupational Overlap

JEL Classification: G34, J2, J3

Suggested Citation

Lagaras, Spyridon, Corporate Takeovers and Labor Restructuring (June 30, 2017). Available at SSRN: https://ssrn.com/abstract=3222950 or http://dx.doi.org/10.2139/ssrn.3222950

Spyridon Lagaras (Contact Author)

University of Pittsburgh, Katz Graduate Business School ( email )

3950 Roberto Clemente Dr
334 Mervis Hall
Pittsburgh, PA Allegheny 15260
United States

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