The Effect of M&A on Wage: Evidence from Financial Institution in Taiwan, ROC
Our empirical results provide an evidence, department merge of firms will increase the profit through the reduction of labor cost, and support why workers in horizontal mergers may share in any increases in the production surplus rather than those on vertical mergers (Horn and Wolinsky; 1988). On the other hand, the expansion of department in the firm will lead to a negative scale effect. The production cost will increase due to the higher labor cost. However, it only has significant effect on M&A within the same industry. It implies that horizontal mergers will have more chance to expansion of department in the firm because the market share of products will increase. .