The Effect of M&As on High-Performer Turnover

This study investigates the question whether high performers are less likely to quit a family firm in the post-merger phase than if they were in non-family firms. We use Mobley’s (1977) Model of Employee Turnover as a cognitive framework and job embeddedness literature to examine how the distinguishing characteristics of family firms affect the distinctive stages of the high-performer turnover process. Using data from the Swiss CRANET survey 2014, with a sample of 245 family- and non-family firms in Switzerland, we find that M&A shocks lead to higher high-performer turnover, and that family firms show a lower level of high-performer turnover after an M&A than non-family firms. Our findings indicate that specific family business characteristics may buffer the detrimental impact of M&As on high-performer turnover.