Journal of
Accounting and Taxation

  • Abbreviation: J. Account. Taxation
  • Language: English
  • ISSN: 2141-6664
  • DOI: 10.5897/JAT
  • Start Year: 2009
  • Published Articles: 96

Full Length Research Paper

Assessing employment effects of mergers using accounting measures: Some evidence from Greece in the period of economic crisis

Nikolaos Giovanis
  • Nikolaos Giovanis
  • Department of Business Administration, Technological Educational Institute (T.E.I.) of Central Macedonia, Greece.
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Panagiotis Pantelidis
  • Panagiotis Pantelidis
  • Department of Business Administration, Technological Educational Institute (T.E.I.) of Central Macedonia, Greece.
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Michail Pazarskis
  • Michail Pazarskis
  • Department of Accounting and Finance, Technological Educational Institute (T.E.I.) of Central Macedonia, Greece.
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Eleni Tairi
  • Eleni Tairi
  • Department of Business Administration, Technological Educational Institute (T.E.I.) of Central Macedonia, Greece.
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  •  Received: 06 October 2017
  •  Accepted: 01 November 2017
  •  Published: 30 November 2017

Abstract

This study analyzed the interdependencies between employment and accounting measures, in order to evaluate the merger effects during the period of the economic crisis in Greece. More specifically, the study analyses five accounting measures in comparison to the total number of employees, as financial ratios, from a sample of all Greek listed firms in the Athens Exchange that executed one merger in the period from 2009 to 2013 as acquirers. From the analysis of the results, it is clear that the mergers had no effect on employment and labor productivity for the whole sample firms merged from 2009 to 2013 and the productivity of workers have not improved significantly after the mergers. Lastly, the study examined the industry differentiation of labor productivity after mergers. The results reveal, in general, a better performance for the commerce and services (CMS) firms from the sample in contrast to the three other basic industry categories: Primary sector (PRI), industrial sector (IND), and constructions and building materials (CNΒ).

 

Key words: Mergers, employment, labor productivity, ratios.