Evaluating the Effects of Mergers and Acquisitions on Employees: Evidence from Matched Employer-Employee Data

The unit of analysis in empirical studies of the employment and wage effects of mergers and acquisitions is typically the plant or firm. In contrast, the unit of observation in this study is the individual worker, which allows us to provide direct, systematic empirical evidence on the effects of different types of mergers and acquisitions on employees. Specifically, we analyze linked employer employee data for the entire population of Swedish workers and over 19,000 manufacturing plants for the period 1985-1998. For each worker, we have data on gender, age, national origin, level of education, type of education, location, industrial sector, annual earnings, as well as each employee’s complete work history both before and after a merger or acquisition. We can also identify whether the plant was involved in a full or partial acquisition or divestiture, as well as a related or unrelated acquisition. The empirical evidence suggests that employee outcomes are more favorable when only part of the company is bought or sold or when the firm engages in an unrelated acquisition.

The Value of Waiting to Invest

This paper studies the optimal timing of investment in an irreversible project where the benefits from the project and the investment cost follow continuous-time stochastic processes. The optimal time to invest and an explicit formula for the value of the option to invest are derived. The rule "invest if benefits exceed costs" does not properly account for the option value of waiting.Simulations show that this option value can be significant, and that for surprisingly reasonable parameter values it may be optimal to wait until benefits are twice the investment cost. Finally, we perform comparative static analysis on the valuation formula and on the rule for when to invest.

A policy response to the e-commerce revolution: the case of betting taxation in the UK

Several environmental changes in the 1990s – including the introduction of a national lottery, the rise of Internet gambling, and the reduction of trade barriers within the EU – induced the UK government to initiate a large-scale review of betting duty. As a result of this review, the government recently announced a significant reduction in betting taxes. They also decided to replace the current general betting duty (GBD), levied as a proportion of betting stakes, with a gross profits tax (GPT), based on the net revenue of bookmakers. We examine the economic rationale behind these decisions and demonstrate how these tax changes have broad implications regarding optimal levels of taxation for other sources of government revenue

Central station applications planning activities and supporting studies

The application of photovoltaic technology in central station (utility) power generation plants is considered. A program of data collection and analysis designed to provide additional information about the subset of the utility market that was identified as the initial target for photovoltaic penetration, the oil-dependent utilities (especially muncipals) of the U.S. Sunbelt, is described along with a series of interviews designed to ascertain utility industry opinions about the National Photovoltaic Program as it relates to central station applications

Assessing the Effects of Mergers and Acquisitions on Firm Performance, Plant Productivity, and Workers: New Evidence from Matched Employer-Employee Data

Studies of the effects of mergers and acquisitions focus on a single unit of analysis: firms, plants, or workers. In contrast, we model these events as transactions that simultaneously have cross-levels effects. Based on the theory of human capital, we generate a set of predictions regarding the antecedents and consequences of firm, plant, and worker turnover. Our empirical analysis is based on longitudinal, linked employer-employee data for virtually the entire population of Swedish manufacturing firms and employees for the period 1985-1998. These data allow us to assess the effects of mergers and acquisitions on firm performance, plant productivity, levels of employment, and compensation. Consistent with human capital theory, we find that mergers and acquisitions lead to improvements in firm performance and plant productivity, although they also result in the downsizing of establishments and firms. These transactions also appear to enhance the careers of workers because they provide a mechanism for improving the sorting and matching or workers and managers to firms and industries that best suit their skills.

Dimensional Regularization and Dimensional Reduction in the Light Cone

We calculate all the 2 to 2 scattering process in Yang-Mills theory in the Light Cone gauge, with the dimensional regulator as the UV regulator. The IR is regulated with a cutoff in $q^+$. It supplements our earlier work, where a Lorentz non-covariant regulator was used and the final results bear some problems in gauge fixing. Supersymmetry relations among various amplitudes are checked using the light cone superfields.Comment: current version accepted by PR

Subcritical Superstrings

We introduce the Liouville mode into the Green-Schwarz superstring. Like massive supersymmetry without central charges, there is no kappa symmetry. However, the second-class constraints (and corresponding Wess-Zumino term) remain, and can be solved by (twisted) chiral superspace in dimensions D=4 and 6. The matter conformal anomaly is c = 4-D < 1. It thus can be canceled for physical dimensions by the usual Liouville methods, unlike the bosonic string (for which the consistency condition is c = D <= 1).Comment: 9 pg., compressed postscript file (.ps.Z), other formats (.dvi, .ps, .ps.Z, 8-bit .tex) available at http://insti.physics.sunysb.edu/~siegel/preprints/ or at ftp://max.physics.sunysb.edu/preprints/siege

Ownership Change, Productivity, and Human Capital: New Evidence from Matched Employer-Employee Data in Swedish Manufacturing

Empirical studies of the impact of changes in ownership of manufacturing plants on productivity (e.g., Lichtenberg and Siegel (1987, 1990a, 1990b), McGuckin and Nguyen (1995, 2001), and Maksimovic and Phillips (2001)) have provided limited evidence on how such transactions affect investment in human capital and have been based strictly on U.S. and U.K. data. We attempt to fill these gaps, based on an analysis of matched employer-employee data from over 19,000 Swedish manufacturing plants for the years 1985-1998. The sample covers virtually the entire population of manufacturing plants with 20 or more employees and a probability-based sample of smaller plants. We assess whether there are differential effects on productivity and human capital for different types of ownership changes, such as partial and full acquisitions and divestitures, and related and unrelated acquisitions. Our results suggest that ownership change results in an increase in relative productivity. We also find that plants involved in these transactions experience increases in average employee age, experience, and the percentage of employees with a college education. Ownership change also leads to an increase in wages and a reduction in the percentage of female workers. All of these patterns emerge most strongly for full acquisitions and divestitures and unrelated acquisitions.

Assessing the Effects of Ownership Change on Women and Minority Employees: Evidence from Matched Employer-Employee Data

While there have been numerous papers on the employment and wage effects of mergers and acquisitions, there has been no direct analysis of the impact of such ownership changes on minority and female workers. This is an unexplored "equity" dimension of these transactions. We fill this gap by analyzing linked employer-employee data for the entire population of Swedish workers and approximately 16,000 manufacturing plants for the period 1985-1998. For each worker employed in these establishments (as well as the entire population of workers), we have data on gender, age, national origin, level of education, type of education, location, industrial sector, annual earnings, as well as each employee's complete work history during the period. We also have data on numerous plant and firm-level characteristics, which allows us to control for additional factors that might result in changes in labor composition and relative compensation. Our findings suggest that ownership change does not significantly alter the relative earnings and employment status of minority and female workers.