Co-determination and Merger Incentives from Transfers of Wealth: Firm Owners vs. Workers

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Title:Co-determination and Merger Incentives from Transfers of Wealth: Firm Owners vs. Workers
Creators:
Coscollá, M. Paz
Granero, Luis M.
Journal or Publication Title:
AUCO Czech Economic Review, 4, 2, pp. 123-139
Uncontrolled Keywords:Mergers, shareholders, stakeholders, worker influence, co-determination

Abstract

When workers can capture rents from their influence on corporate decisions, mergers can become a device to generate transfers of wealth. This paper examines the merger incentives from these transfers of wealth. It is found that worker influence increases merger profitability, in line with the owners’ incentive to use mergers to reduce the rents captured by workers. In contrast, the workers’ merger incentives are shown to be decreasing in their own degree of influence on the merger decision, in line with the view according to which workers can be used by incumbent managers as a defensive instrument in acquisitions.

Official URL: http://www.ceeol.com/aspx/issuedetails.aspx?issueid=770E8657-FF06-4238-B4AE-70B7B8ABF697&articleid=B15090A3-DF32-43AB-927C-A49BCA6E2387

Title:Co-determination and Merger Incentives from Transfers of Wealth: Firm Owners vs. Workers
Creators:
Coscollá, M. Paz
Granero, Luis M.
Uncontrolled Keywords:Mergers, shareholders, stakeholders, worker influence, co-determination
Subjects:H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
H Social Sciences > HF Commerce
Divisions:Section of external journals > AUCO Czech Economic Review
Journal or Publication Title:AUCO Czech Economic Review
Volume:4
Number:2
Page Range:pp. 123-139
ISSN:1802-4696
Publisher:Charles University
Related URLs:
URLURL Type
http://auco.cuni.czPublisher
http://avi.lib.cas.cz/node/183Publisher
ID Code:6173
Item Type:Article
Deposited On:01 Jul 2010 17:40
Last Modified:01 Jul 2010 15:40

Citation

Coscollá, M. Paz; Granero, Luis M. (2010) Co-determination and Merger Incentives from Transfers of Wealth: Firm Owners vs. Workers. AUCO Czech Economic Review, 4 (2). pp. 123-139. ISSN 1802-4696

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