Department of Economics and Business Economics

An Empirical Analysis of Post-Merger Organizational Integration

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  • Valerie Anne Rolande Smeets
  • Kathryn Ierulli, University of Chicago, GSB, United States
  • Michael Gibbs, University of Chicago GSB & IZA, United States
We study post-merger organizational integration using linked employer-employee data. Integration is implemented by reassigning a small number of high skilled workers, especially in R&D and management. Workforce mixing is concentrated to establishments set up after merger rather than to previously existing establishments. Worker turnover is high after merger, but new hiring yields stable total employment. Target employees have higher turnover and reassignment, particularly if the target firm is small relative to the acquiring firm. These findings may suggest integration is costly, but can be achieved by focusing on key employees. Alternatively, reassigning a few key employees is sufficient for achieving integration.
Original languageEnglish
JournalThe Scandinavian Journal of Economics
Pages (from-to)463-493
Number of pages31
Publication statusPublished - 2016

    Research areas

  • Merger, Organizational integration

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