Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/248779 
Year of Publication: 
2021
Series/Report no.: 
Tinbergen Institute Discussion Paper No. TI 2021-095/IV
Publisher: 
Tinbergen Institute, Amsterdam and Rotterdam
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.
Subjects: 
Mergers and Acquisitions
Corporate Restructuring
Mental Health
Mental Illness
JEL: 
G34
I10
J81
L23
Document Type: 
Working Paper

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