Acquisition Premiums, Subsequent Workforce Reductions and Post-Acquisition Performance

By Hema A. Krishnan, Mike Hitt, Daewoo Park. 2007

168 citations recorded by the source corpus.

Subfields: Accounting, Organizational Behavior and Human Resource Management, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/bf1f9dc86264df65d225ea12a222426ba3d0c68e

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In Accounting

In Organizational Behavior and Human Resource Management

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Citations in the corpus

Causes and Effects of Employee Downsizing: A Review and Synthesis (2010, background): “Finally, in a study involving the effects of acquisition premiums, Krishnan, Hitt, and Park (2007) found that when acquiring firms paid higher acquisition premiums to target firm shareholders, it typically led to greater workforce reductions in the postacquisition phase.”
1 The Fundamental Agency Problem and Its Mitigation: Independence, Equity, and the Market for Corporate Control (2007, background): “Recent research also suggests that there is a positive relationship between the premiums paid for an acquisition and the number of people laid off after the target is acquired ( Krishnan, Hitt, & Park, 2007 ).”
Owners on Both Sides of the Deal: Mergers and Acquisitions and Overlapping Institutional Ownership (2008, background): “At the same time, the average premium for targets ranges from 30 to 50 percent of market value (Hayward and Hambrick, 1997; Krishnan, Hitt, and Park, 2007; Walkling and Edmister, 1985).”
Mergers and Acquisitions: Overcoming Pitfalls, Building Synergy, and Creating Value (2009, background): “For example, a common action is large-scale workforce reductions (Krishnan et al., 2007).”
When Firms are Desperate to Grow via Acquisition: The Effect of Growth Patterns and Acquisition Experience on Acquisition Premiums (2011, background): “Research suggests that acquisition premiums are negatively associated with post-acquisition return to the acquiring firm’s shareholders (Varaiya and Ferris, 1987; Haunschild, 1994; Krishnan, Hitt, and Park, 2007).”