June Lu
Research Mentor(s): Can Wang
Mentor Department: Strategy
Authors: Can Wang
Session: Session 2 (10:00am – 10:50am)
Presentation Type: Poster 17
Abstract
“In today’s highly competitive business environment, a company’s human capital strategy is pivotal for its success and resilience. It greatly influences the firm’s ability to adapt to market challenges. While extensive research has explored the impact of human capital on company performance, a significant knowledge gap remains regarding the factors affecting managerial retention during divestment events following corporate acquisitions. This knowledge deficiency impedes our understanding of the intricate dynamics during these critical business transitions. Our study seeks to bridge this gap by examining the determinants that shape firms’ decisions concerning the fate of managers within divestment targets post-acquisition. We aim to investigate how various factors, including managerial skills, divestment motivations, and other relevant organizational and industry-level aspects, interact to determine managerial retention outcomes. Utilizing datasets on U.S. firm information and Merger & Acquisition cases, we will empirically assess the influence of manager characteristics and divestment motivations on managerial retention results. The study helps us to gain deeper insights into the critical decisions made by firms, ultimately enhancing our ability to develop informed strategies for managing human capital.”
