Determinants of layoff announcements following M&As: an empirical investigation

Article Abstract:

A study examined if mergers and acquisitions (M&As) automatically result in employee layoffs. Specifically, it aimed to determine the influence of the attributes of the acquiring firm, the target firm and the transaction on the likelihood that an acquisition will be followed by a layoff announcement. Hypotheses were developed and tested using data on 136 major M&As between 1989 and 1993. Findings revealed that the likelihood of a layoff announcement is greater if the two parties are related. The probability was not affected when the acquiring firm was a foreign organization. In addition, results also showed a negative relationship between target revenue per employee before the M&A and the likelihood of a layoff announcement. The financial performance of the target firm before the transaction and its use of borrowed funds to fund the merger did not affect the layoff likelihood.

Acquisitions and mergers, Layoffs

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An investigation of the relationship between board composition and stockholder suits

Article Abstract:

A sample of Delaware cases occurring between 1975 and 1986 in which directors were sued by shareholders for failing to maintain their fiduciary responsibilities was used to analyze the connection between shareholder suits and the makeup of boards of directors. Research results indicate that boards that are sued tend to have a larger number of inside directors, but no significant link exists between suit outcomes and board makeup.

Laws, regulations and rules, Corporate directors, Stockholders, Stockholders' derivative actions, Shareholder lawsuits, Fiduciary duties

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Relationship between innovativeness, quality, growth, profitability, and market value

Article Abstract:

A study is conducted to examine the relationship between innovativeness, quality, growth, profitability, and market value at the firm level. The results of structural equation models indicate that innovativeness mediates the relationship between quality and growth.

United States, Forecasts, trends, outlooks, Evaluation, Forecasts and trends, Market trend/market analysis, Marketing, Marketing models, Market value

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