The effect of mergers on human capital : evidence from sell-side analysts

While mergers often create value, there exist costs that can limit or offset potential synergies. Literature in a number of different areas of business suggest these costs can result from issues related to the impairment of a firms' human capital, often when two workforces are being integrated. However, there exists minimal empirical literature characterizing these costs. In this dissertation, I use a unique setting in which to examine these integration issues: sell-side analysts in brokerage house mergers. This setting allows for a better characterization of the integration issues that leads to a better understanding of how mergers can impact human capital.