The 310th Wenlan Financial Forum

Abstract：

We gauge labor market competition using job postings and show that firms tend to acquire companies that are their local labor competitors. Cross-sectional analyses indicate local labor market competitor acquisitions are more likely in industries with greater corporate culture similarities, more binding labor non-compete agreements, and non-rival product market competitors. Using a quasi-experiment, we find employees’ perceptions of compensation and career outlooks are negatively affected following a merger between firms that are local labor market competitors, suggesting that this type of merger reduces the welfare of the labor market due to the change in the competition environment.

Speaker Introduction：

Chen Shen, Ph.D. in Finance from the University of North Carolina at Chapel Hill, is currently an Assistant Professor in the Department of Finance at Ontario Tech University, Canada. His research achievements have been widely recognized in academia, including publications in journals such as "Industrial and Corporate Change," as well as multiple working papers under review in prestigious journals like "Journal of Banking & Finance" and "Quarterly Journal of Finance." His research not only focuses on the micro-level of financial markets and enterprises but also strives to explore the impact of social and environmental factors on financial markets.