A Study About The Impact On The Company's Labor Demand Of M&A Activities Of Listed Companies

As one effective and important way of readjusting the industrial structure and making indirect investment, Mergers and acquisition has a history of more than 100 years in western countries and have gone through five waves there. In China, there were also three M&A waves.Thus, it attracts wide attention and great interest from scholars and becomes an important research topic to them.However, the domestic scholars mainly focused on the performance, motivation, timing of M&A activities, but rarely adrressed the impact on company's labor demand of M&A. The studies can theoretically enrich the content of the study on M&A. Because M&A activities affect the company's labor demand, it affects the social employment, which is the basis of the national stability and an important premise for building a socialist harmonious society. Therefore, the study about the impact on company's labor demand of M&A activities can contribute to a reasonable employment policy and has an important theoretical and practical significance. On the base of alien study methods and the reality of our country, this paper firstly adopts the economic model of panel data to study the impact on company's labor demand of listed companies'M&A activities through empirical researches. And this theoretically enriches and expands the content and scale of the study on M&A.This paper chooses a sample with the balanced panel data sets consisting of corresponding indexes of the A-Stock Listed Companies in Shenzhen & Shanghai Stock Exchange which were engaged in M&A between 2002 and 2008.By adopting the economic model of fixed effects changed intercepts, it proves that M&A activities have a significant impact on the company's labor demand through empirical researches.Listed companies'M&A activities have a negative effect on the company's labor demand and this negative correlation indicates continual M&A activities can reduce the company's labor demand. As a result, the unemployment increase and a series of social problems happen.M&A activities of listed companies in different industries have different impacts on the company's labor demand. M&A activities of the primary industry have a positive impact while those of the secondary and tertiary industry have a negative one.