Business, Management and Accounting
3 years ago

Mergers with Human Capital Complementarity Lead to Higher Wages & Retention

Human Capital Integration in Mergers and Acquisitions
Paolo Fulghieri, Merih Sevilir

Paper Summary

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The article discusses how successful mergers depend on employees collaborating and sharing knowledge. When firms merge, employees can choose to work together or compete for resources. Mergers between firms with similar human capital lead to better collaboration and performance. In these cases, employees are more likely to stay, earn higher wages, and experience fewer layoffs.