The wage and employment consequences of ownership change
This paper provides a comparative examination of the consequences of leveraged buyouts (LBOs) and corporate takeovers on employment growth and wage growth. Employing both difference-in-differences combined with propensity score matching and the control function approach, we find evidence that (i) wa...
| Main Authors: | , , |
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| Format: | Article |
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Wiley
2013
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| Online Access: | https://eprints.nottingham.ac.uk/2697/ |
| _version_ | 1848790852416045056 |
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| author | Amess, Kevin Girma, Sourafel Wright, Mike |
| author_facet | Amess, Kevin Girma, Sourafel Wright, Mike |
| author_sort | Amess, Kevin |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This paper provides a comparative examination of the consequences of leveraged buyouts (LBOs) and corporate takeovers on employment growth and wage growth. Employing both difference-in-differences combined with propensity score matching and the control function approach, we find evidence that (i) wages remain unchanged after either a private equity (PE)-backed or non-PE-backed LBO, (ii) wages remain unchanged after an unrelated takeover and (iii) related takeovers have negative employment consequences, possibly because of rationalisation. Our evidence does not find strong support for intervention in the market for corporate control on the grounds of protecting employees' welfare. |
| first_indexed | 2025-11-14T18:19:12Z |
| format | Article |
| id | nottingham-2697 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T18:19:12Z |
| publishDate | 2013 |
| publisher | Wiley |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-26972020-05-04T16:38:45Z https://eprints.nottingham.ac.uk/2697/ The wage and employment consequences of ownership change Amess, Kevin Girma, Sourafel Wright, Mike This paper provides a comparative examination of the consequences of leveraged buyouts (LBOs) and corporate takeovers on employment growth and wage growth. Employing both difference-in-differences combined with propensity score matching and the control function approach, we find evidence that (i) wages remain unchanged after either a private equity (PE)-backed or non-PE-backed LBO, (ii) wages remain unchanged after an unrelated takeover and (iii) related takeovers have negative employment consequences, possibly because of rationalisation. Our evidence does not find strong support for intervention in the market for corporate control on the grounds of protecting employees' welfare. Wiley 2013-09-23 Article PeerReviewed Amess, Kevin, Girma, Sourafel and Wright, Mike (2013) The wage and employment consequences of ownership change. Managerial and Decision Economics, 35 (2). pp. 161-171. ISSN 0143-6570 http://onlinelibrary.wiley.com/doi/10.1002/mde.2650/abstract doi:10.1002/mde.2650 doi:10.1002/mde.2650 |
| spellingShingle | Amess, Kevin Girma, Sourafel Wright, Mike The wage and employment consequences of ownership change |
| title | The wage and employment consequences of ownership change |
| title_full | The wage and employment consequences of ownership change |
| title_fullStr | The wage and employment consequences of ownership change |
| title_full_unstemmed | The wage and employment consequences of ownership change |
| title_short | The wage and employment consequences of ownership change |
| title_sort | wage and employment consequences of ownership change |
| url | https://eprints.nottingham.ac.uk/2697/ https://eprints.nottingham.ac.uk/2697/ https://eprints.nottingham.ac.uk/2697/ |