From Employment to Entrepreneurship: The Effects of Merger and Acquisition
2013 (English)Conference paper, Abstract (Other academic)
Regardless of the reasons stimulating M&As, the engaged firms are confronted with tough challenges and the need to assure a successful integration of the firms involved. A common short-term outcome of a M&A is reorganization through downsizing, reducing research and development activities and cutting down employees. With companies facing difficulties and inconveniences during the period of post-M&A, the concerned employees and their careers are compromised. This paper examines the conditions under which M&As affect the propensity of employees to switch from employment to entrepreneurship.
We empirically investigate Swedish firms being involved in a M&A during the time period 2000-2009. We isolate firms operating in knowledge intensive industries yielding 35 239 observations including 9482 unique firms and 1395 mergers and acquisitions. Applying a fixed effect negative binomial regression, we confirm that the size difference, activity match and productivity difference have an impact on the number of spin-outs generated after a M&A.
Place, publisher, year, edition, pages
M&A, spin-outs, downsizing, self-employment
Economics and Business
IdentifiersURN: urn:nbn:se:kth:diva-127389OAI: oai:DiVA.org:kth-127389DiVA: diva2:644035
Nordic Academy of Management Conference
QC 201403122013-08-292013-08-292014-03-12Bibliographically approved