Labor Income Share Change and Mergers and Acquisitions: Empirical Evidence of the Importance of Employees

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Mergers and Acquisitions: Empirical Evidence of the Importance of Employees</title> <meta name="description" content="Labor Income Share Change and Mergers and Acquisitions: Empirical Evidence of the Importance of Employees"> <meta name="keywords" content="labor income share, the success rate of M&A, value distribution, goodwill impairment"> <meta name="viewport" content="width=device-width, initial-scale=1, minimum-scale=1, maximum-scale=1, user-scalable=no"> <meta charset="utf-8"> <link href="https://cdn.waset.org/favicon.ico" type="image/x-icon" rel="shortcut icon"> <link href="https://cdn.waset.org/static/plugins/bootstrap-4.2.1/css/bootstrap.min.css" rel="stylesheet"> <link href="https://cdn.waset.org/static/plugins/fontawesome/css/all.min.css" rel="stylesheet"> <link href="https://cdn.waset.org/static/css/site.css?v=150220211555" rel="stylesheet"> </head> <body> <header> <div class="container"> <nav class="navbar navbar-expand-lg navbar-light"> <a class="navbar-brand" 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</div> <div class="card publication-listing mt-3 mb-3"> <h5 class="card-header" style="font-size:.9rem">Labor Income Share Change and Mergers and Acquisitions: Empirical Evidence of the Importance of Employees</h5> <div class="card-body"> <p class="card-text"><strong>Authors:</strong> <a href="https://publications.waset.org/abstracts/search?q=Jie%20Zhang">Jie Zhang</a>, <a href="https://publications.waset.org/abstracts/search?q=Chaomin%20Zhang"> Chaomin Zhang</a> </p> <p class="card-text"><strong>Abstract:</strong></p> Mergers and Acquisitions (M&A) are important market tools to support economic transformation and upgrading to achieve high-quality development. Based on the employee value distribution in the context of M&A and reorganization of Chinese enterprises, this paper takes China's A-share listed companies from 2007 to 2022 as research samples to explore the impact of employee labor income share fluctuation on the success rate of M&A. The research finds that, first, when employees of the target party expect the share of labor income to decline after the merger, it will significantly inhibit the success rate of the merger. Second, when there is a vertical gap (that is, the target party has a larger scale and a higher level of corporate governance) or a horizontal gap (that is, the merger parties are in different industries and strategies) .Third, for enterprises that have completed the M&A process, the decline of labor income share will lead to higher post-M&A goodwill impairment. The research conclusions of this paper enrich the literature on the economic consequences of labor income share and the influencing factors of M&A, and provide useful reference for enterprises to better coordinate the value distribution of employees in M&A. <iframe src="https://publications.waset.org/abstracts/192550.pdf" style="width:100%; height:400px;" frameborder="0"></iframe> <p class="card-text"><strong>Keywords:</strong> <a href="https://publications.waset.org/abstracts/search?q=labor%20income%20share" title="labor income share">labor income share</a>, <a href="https://publications.waset.org/abstracts/search?q=the%20success%20rate%20of%20M%26A" title=" the success rate of M&A"> the success rate of M&A</a>, <a href="https://publications.waset.org/abstracts/search?q=value%20distribution" title=" value distribution"> value distribution</a>, <a href="https://publications.waset.org/abstracts/search?q=goodwill%20impairment" title=" goodwill impairment"> goodwill impairment</a> </p> <a href="https://publications.waset.org/abstracts/192550/labor-income-share-change-and-mergers-and-acquisitions-empirical-evidence-of-the-importance-of-employees" class="btn btn-primary btn-sm">Procedia</a> <a href="https://publications.waset.org/abstracts/192550.pdf" target="_blank" class="btn btn-primary btn-sm">PDF</a> <span class="bg-info text-light px-1 py-1 float-right rounded"> Downloads <span class="badge badge-light">18</span> </span> </div> </div> </div> </main> <footer> <div id="infolinks" class="pt-3 pb-2"> <div class="container"> <div style="background-color:#f5f5f5;" class="p-3"> <div class="row"> <div class="col-md-2"> <ul class="list-unstyled"> About <li><a href="https://waset.org/page/support">About Us</a></li> <li><a href="https://waset.org/page/support#legal-information">Legal</a></li> <li><a target="_blank" rel="nofollow" href="https://publications.waset.org/static/files/WASET-16th-foundational-anniversary.pdf">WASET celebrates its 16th foundational 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Labor Income Share Change and Mergers and Acquisitions: Empirical Evidence of the Importance of Employees