Liang, Renneboog, and Vansteenkiste (2017)

Liang, Hao, Luc Renneboog, and Cara Vansteenkiste. “Cross-Border Acquisitions and Employee-Engagement.” Working paper (Singapore Management University), September 22, 2017.

From the authors’ 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.”

Link: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3040579