Malikov, Kamran and Demirbag, Mehmet and Kuvandikov, Azimjon and Manson, Stuart (2021) Workforce reductions and post-merger operating performance: The role of corporate governance. Journal of Business Research, 122. pp. 109-120. DOI https://doi.org/10.1016/j.jbusres.2020.08.042
Malikov, Kamran and Demirbag, Mehmet and Kuvandikov, Azimjon and Manson, Stuart (2021) Workforce reductions and post-merger operating performance: The role of corporate governance. Journal of Business Research, 122. pp. 109-120. DOI https://doi.org/10.1016/j.jbusres.2020.08.042
Malikov, Kamran and Demirbag, Mehmet and Kuvandikov, Azimjon and Manson, Stuart (2021) Workforce reductions and post-merger operating performance: The role of corporate governance. Journal of Business Research, 122. pp. 109-120. DOI https://doi.org/10.1016/j.jbusres.2020.08.042
Abstract
This paper examines whether corporate governance mechanisms influence the association between workforce reductions and post-acquisition operating performance. Using UK-based acquisitions, it is found that there is a negative relationship between employment reductions and post-acquisition operating performance. However, the results show that this negative association becomes positive when the board has a substantial equity ownership. This suggests acquirers with higher levels of board ownership make better quality layoff decisions and, thereby, achieve operating performance improvement subsequent to workforce reductions. The results also indicate that larger board size and greater board independence decrease the negative effect of acquisition-related workforce reductions on subsequent operating performance. Further, our results show that CEO duality increases the negative relationship between employment reductions and post-acquisition operating performance. Overall, the results suggest that corporate governance plays an important role in understanding the performance effect of acquisition-related workforce reductions.
Item Type: | Article |
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Uncontrolled Keywords: | workforce reductions; post-acquisition operating performance; corporate governance; merger and acquisition; Workforce reductions; Post-acquisition operating performance; Corporate governance; Merger and acquisition |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Essex Business School |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 23 Sep 2020 14:56 |
Last Modified: | 30 Oct 2024 16:31 |
URI: | http://repository.essex.ac.uk/id/eprint/28583 |
Available files
Filename: WR OP and CG with_titlepage.pdf
Licence: Creative Commons: Attribution-Noncommercial-No Derivative Works 3.0