Paper Abstract
1089. Lucian Bebchuk, Kobi Kastiel & Roberto Tallarita, Stakeholder Capitalism in the Time of COVID: Appendix, 12/2022.
Abstract: This paper provides the appendix to our article, Stakeholder Capitalism in the Time of COVID, forthcoming in the Yale Journal of Regulation, Vol 40, 2023, and available at https://papers.ssrn.com/abstract =4026803. The Article reports the conclusions of our analysis of a sample of 122 $1B+ acquisitions of public companies that were announced during the first two years of the COVID pandemic. Overall, we found that, even though deal terms provided large gains for the shareholders of target companies, as well as substantial private benefits for corporate leaders, corporate leaders largely did not negotiate for any employee protections, including payments to employees who would be laid off post-deal. Similarly, we found that corporate leaders failed to negotiate for protections for customers, suppliers, communities, the environment, and other stakeholders.
Although the article reports our overall findings with respect to the full sample of 112 acquisitions, the article provides full details of our analysis of particular cases only with respect to the 24 acquisitions above $10 billion in our sample. This Appendix supplements this reporting by providing full details of our analysis with respect to each of the particular cases of the 98 acquisitions in our sample with a consideration between $1 billion and $10 billion.