Title: Staying home or moving away? Restructuring efforts within multinational enterprises
Authors: Abraham, Filip ×
Goesaert, Tim #
Konings, Joep #
Issue Date: 2014
Publisher: Basil Blackwell for the Trade Policy Research Centre
Series Title: The World Economy vol:37 issue:6 pages:765-782
Abstract: This paper analyses the impact of geographic dispersion on employment changes within multinationals. Building on earlier work of Landier et al. (2009, Review of Financial Studies 22, 3: 1119), we investigate whether corporate decision-making within a multinational is affected by the distance between an affiliate and its headquarter. Our findings suggest a detrimental impact of distance on employees, by either an increased likelihood of observing a downsizing event, or by witnessing a larger decrease in the number of employees at distant locations during downsizing events. In addition, our results seem to relate the higher likelihood of observing a downsizing event to the role of social factors on decision making. The more visible a manager is in his community, the less likely he is to downsize proximate divisions.
ISSN: 0378-5920
Publication status: published
KU Leuven publication type: IT
Appears in Collections:VIVES (Research Centre for Regional Economics), Leuven
Research Center of International Economics, Leuven
Research Center of Monetary and Information Economics, Leuven
LICOS - Centre for Institutions and Economic Performance, Leuven
× corresponding author
# (joint) last author

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