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The Hidden Costs of Divestitures – Implications for the Commitment of the Remaining Employees

Divestitures are a crucial form of corporate restructuring, with broad implications for firms and their employees. In this paper, three hypotheses are analysed, looking into the positive relationship that divestiture proximity has with employee turnover, using a longitudinal dataset from a large, highly diversified European MNE.

This paper investigates the outcomes of corporate divestitures from the largely overlooked perspective of the divesting firm’s remaining employees.

Authors and affiliations:

● Jan C. Hennig, University of Groningen, Netherlands
● Michelle Lang, University of Goettingen, Germany
● Leonie M. Brill, University of Goettingen, Netherlands
● Natascha Loth, University of Goettingen, Netherlands
● Michael Wolff, University of Goettingen, Netherlands

Access the full article here: https://onlinelibrary.wiley.com/doi/full/10.1111/joms.70149?campaign=wolearlyview

Authors