Cross-Border Acquisitions and Employee-Engagement

Hao Liang, Luc Renneboog, Cara Vansteenkiste

Research output: Working paperDiscussion paperOther research output

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Abstract

We provide novel evidence that a firm’s engagement in employee-related issues explains part of the value difference between its domestic and cross-border takeovers. An acquirer’s investment in employee relations is positively related to the firm’s performance when acquiring domestically, but labor-related frictions reverse this effect when acquiring a foreign target. The results cannot be explained by country-level labor regulation but are consistent with the notion that labor-related frictions exist that prohibit firms from efficiently transforming monetary incentives in higher shareholder value when acquiring a foreign target firm.
Original languageEnglish
Place of PublicationTilburg
PublisherCentER, Center for Economic Research
Number of pages57
Volume2017-038
Publication statusPublished - 21 Sep 2017

Publication series

NameCentER Discussion Paper
Volume2017-038

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Cross-border acquisitions
Employee engagement
Friction
Labor
Cross-border
Monetary incentives
Shareholder value
Employees
Labor regulation
Firm performance
Employee relations

Keywords

  • employee-engagement
  • labor protection
  • Monetary incentives
  • Cross-Border Mergers and Acquisitions

Cite this

Liang, H., Renneboog, L., & Vansteenkiste, C. (2017). Cross-Border Acquisitions and Employee-Engagement. (CentER Discussion Paper; Vol. 2017-038). Tilburg: CentER, Center for Economic Research.
Liang, Hao ; Renneboog, Luc ; Vansteenkiste, Cara. / Cross-Border Acquisitions and Employee-Engagement. Tilburg : CentER, Center for Economic Research, 2017. (CentER Discussion Paper).
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Liang, H, Renneboog, L & Vansteenkiste, C 2017 'Cross-Border Acquisitions and Employee-Engagement' CentER Discussion Paper, vol. 2017-038, CentER, Center for Economic Research, Tilburg.

Cross-Border Acquisitions and Employee-Engagement. / Liang, Hao; Renneboog, Luc; Vansteenkiste, Cara.

Tilburg : CentER, Center for Economic Research, 2017. (CentER Discussion Paper; Vol. 2017-038).

Research output: Working paperDiscussion paperOther research output

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Liang H, Renneboog L, Vansteenkiste C. Cross-Border Acquisitions and Employee-Engagement. Tilburg: CentER, Center for Economic Research. 2017 Sep 21. (CentER Discussion Paper).