Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2021-10-28
Number: 21-095/IV
Author-Name: Laurent Bach
Author-Workplace-Name: ESSEC Business School, Swedish House of Finance
Author-Name: Ramin P. Baghai
Author-Workplace-Name: Stockholm School of Economics, Centre for Economic Policy Research (CEPR), European Corporate Governance Institute (ECGI), Swedish House of Finance
Author-Name: Marieke Bos
Author-Workplace-Name: Stockholm School of Economics; Vrije Universiteit Amsterdam, Federal Reserve Bank of Philadelphia, Tinbergen Institute
Author-Name: Rui C. Silva
Author-Workplace-Name: NOVA School of Business and Economics; Centre for Economic Policy Research (CEPR)
Title: How Do Acquisitions Affect the Mental Health of Employees?
Abstract: Using employer-employee level data linked to individual health records, we document that the incidence of stress, anxiety, depression, psychiatric medication usage, and even suicide increase following acquisitions. These effects are prevalent among employees from both targets and acquirers, in weak as well as in growing, profitable firms. Employees who experience negative career developments within the merging firms, 'blue-collar' workers, and employees with lower cognitive and non-cognitive skills are most affected. A variety of tests address endogeneity concerns, including an analysis exploiting failed mergers. Our findings point to mental illness as a significant non-pecuniary cost of acquisitions.
Classification-JEL: L23, G34, I10, J81
Keywords: Mergers and Acquisitions, Corporate Restructuring, Mental Health, Mental Illness
File-URL: https://papers.tinbergen.nl/21095.pdf
File-Format: application/pdf
File-Size: 1.521.929 bytes
Handle: RePEc:tin:wpaper:20210095