LBO and Restructuring: What Impact on Employment and Workers? An Empirical Analysis in the Moroccan Context

Authors

  • Mohamed SISAID National School of Commerce and Management of Settat, Université Hassan Premier, Settat, Maroc
  • Mohamed MAKHROUTE National School of Commerce and Management of Settat, Université Hassan Premier, Settat, Maroc

Keywords:

LBO, restructuring, employment, payroll, Morocco, quantitative analysis, corporate governance

Abstract

Leveraged Buyouts (LBOs) are financial transactions that profoundly alter the structure of target companies. While their impact on profitability and financial performance has been widely studied, their effects on employment and employees remain a subject of debate, particularly in the Moroccan context. This article presents an empirical analysis of the impact of LBOs on employment trends and wage bills within the affected firms. The study is based on a sample of 21 Moroccan companies that underwent an LBO between 2005 and 2022. Using a panel data econometric model estimated through a difference-in-differences regression method, we assess employment evolution in relation to payroll and sectoral average wages. The findings highlight the effects of LBOs on internal corporate restructuring and raise important questions regarding post-LBO employment stability.

JEL Classification: J24

Productivity Paper type: Empirical research.

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Published

2025-06-05

How to Cite

SISAID, M., & MAKHROUTE, M. (2025). LBO and Restructuring: What Impact on Employment and Workers? An Empirical Analysis in the Moroccan Context. International Journal of Accounting, Finance, Auditing, Management and Economics, 6(6), 240–254. Retrieved from https://ijafame.org/index.php/ijafame/article/view/1922

Issue

Vol. 6 No. 6 (2025)

Section

Articles

License

Copyright (c) 2025 Mohamed SISAID, Mohamed MAKHROUTE

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