The Effects of the National Setting on Employment Practice: The Case of Downsizing

International Business Review, Forthcoming

ECGI - Finance Working Paper No. 136/2006 (revised 2013)

42 Pages Posted: 12 Feb 2008 Last revised: 22 May 2013

See all articles by Marc Goergen

Marc Goergen

IE Business School, IE University; European Corporate Governance Institute (ECGI)

Chris Brewster

Henley Management College - Human Resource Management

Geoffrey Wood

University of Sheffield - School of Management

Date Written: May 22, 2013

Abstract

This paper uses evidence from a large database on companies from 16 European countries, to highlight patterns in their employment practices and reconcile these with classifications of systems of corporate governance and employment relations. It also analyses whether there are differences in employment practices for firms that have been recently involved in mergers and acquisitions. The observed country effects fit in relatively well with the predictions of the juridico-political theories: the political orientation of the national governments and the quality of law fare relatively well in explaining these country effects. Theories of regulation that point to the interconnected nature of these variables explain further differences in employment practices. The merger effects are less clear-cut. However, again, recent regulationist thinking, which suggests the uneven nature of systemic evolution, seems relevant in this context.

Keywords: capitalist systems, corporate governance systems, employment practices, mergers and acquisitions

JEL Classification: G34, M12, M51, P1

Suggested Citation

Goergen, Marc and Brewster, Chris and Wood, Geoffrey, The Effects of the National Setting on Employment Practice: The Case of Downsizing (May 22, 2013). International Business Review, Forthcoming, ECGI - Finance Working Paper No. 136/2006 (revised 2013), Available at SSRN: https://ssrn.com/abstract=942232 or http://dx.doi.org/10.2139/ssrn.942232

Marc Goergen (Contact Author)

IE Business School, IE University ( email )

Finance Department
Maria de Molina, 12
Madrid, 28006
Spain

HOME PAGE: http://www.ie.edu/business-school/faculty-and-research/faculty/marc-goergen/

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

HOME PAGE: http://www.ecgi.org

Chris Brewster

Henley Management College - Human Resource Management ( email )

Greenlands
Henley-on-Thames
Oxfordshire RG9 3AU, England
United Kingdom

Geoffrey Wood

University of Sheffield - School of Management ( email )

9 Mappin Street
Sheffield, S1 4DT
United Kingdom
0114 22 23346 (Phone)

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