Unemployment Effects of Mergers and Acquisitions : Empirical Approach

Mergers and acquisitions are strategic managerial tools that have gained importance in economic functions. Its increasing use by managers have made clearer and amplified its impact on many other economic variables. I used panel data on five European countries and the United States to analyse the impact of mergers and acquisitions on unemployment. The results show that the volume and value of transactions respectively increases and decreases unemployment. This means that the volume and transactions of mergers matter in opposite effect in terms of unemployment. I outlined the implication for policy therefore