Adding Assets, Losing People: The Contingent Relationship Between M&A and Managerial Mobility
Abstract: Especially when undertaking major structural changes such as acquisitions, firms aim to retain their own and acquired human capital. Yet, under turbulent conditions, firms are more susceptible to losing these. In this paper we aim to understand which conditions amplify and attenuate these changes. In particular, we investigate how managerial characteristics influence this likelihood and where these managers end up after moving. We examine these questions using a comprehensive dataset of all managers who worked in the global pharmaceutical industry from 1997 to 2016. We find that managers are more likely to move after the acquisition, but only in the first three years, if they stay during this period, they are much less likely to move after that than managers who never experienced an acquisition. Managers that do move after an acquisition are much more likely to move to smaller firms and to another industry.
With B. Dionisi, N. Dutt, and A. Gambardella - Target Academy of Management Discoveries