Employee Rights and Acquisitions

  title={Employee Rights and Acquisitions},
  author={Anzhela Knyazeva and Diana Knyazeva},
This paper examines the outcomes of corporate acquisitions from the perspective of stakeholdershareholder agency conflicts. Using state variation in labor rights laws, we find that acquirers with strong labor rights experience lower announcement returns. The effect can be attributed to such acquirers pursuing deals that are not in the best interest of the acquirer’s shareholders. The negative effect of strong labor rights on acquirer returns and (combined acquirer and target announcement… CONTINUE READING