The dynamic impacts of M&A on target firm’s labor in Japan: tentative dynamic panel estimation by GMM

This paper provides a systematic empirical analysis of the effects of the M&A on target firm’s employment in Japan. It may contribute to the Japanese literature by capturing the dynamic employment impacts of firm acquisition using latest micro data. Our main findings are: the immediate effects of firm acquisition on target firm’s employment proved to be significantly negative presumably due to labor restructuring intended by the acquiring firm, while the negative effects do not appear to last as the subsequent dynamic impacts on target firm’s employment.