Author

Han MaFollow

Date of Award

Fall 8-21-2020

Degree Type

Thesis

Degree Name

Doctor of Philosophy (PhD)

Department

Finance

First Advisor

Lixin Huang

Second Advisor

Mark Chen

Third Advisor

Omesh Kini

Fourth Advisor

Vincent Yao

Abstract

This paper examines the local labor spillover effect of mergers and acquisitions (M&As). By focusing on M&As in the manufacturing sector, I find that, in the metropolitan statistical areas (MSAs) where target firms reside, the negative effect of M&As on employment growth spills over from the manufacturing sector to the non-tradable sector through shrinking local consumer demand. Further tests with household-level data confirm this finding. The spillover effect is stronger when M&A transactions are horizontal and when an MSA relies more heavily on the manufacturing sector. Finally, lower minimum wage requirements may absorb the negative pressure from M&As on the non-tradable sector employment growth.

DOI

https://doi.org/10.57709/19426885

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