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.
| Original language | English |
|---|---|
| Pages (from-to) | 765-782 |
| Number of pages | 18 |
| Journal | World Economy |
| Volume | 37 |
| Issue number | 6 |
| DOIs | |
| Publication status | Published - 2014 |
| Externally published | Yes |
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ASJC Scopus subject areas
- Finance
- Accounting
- Economics and Econometrics
- Political Science and International Relations
Cite this
Staying home or moving away? Restructuring efforts within multinational enterprises. / Abraham, Filip; Goesaert, Tim; Konings, Jozef.
In: World Economy, Vol. 37, No. 6, 2014, p. 765-782.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Staying home or moving away? Restructuring efforts within multinational enterprises
AU - Abraham, Filip
AU - Goesaert, Tim
AU - Konings, Jozef
PY - 2014
Y1 - 2014
N2 - 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.
AB - 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.
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UR - http://www.scopus.com/inward/citedby.url?scp=84902085402&partnerID=8YFLogxK
U2 - 10.1111/twec.12179
DO - 10.1111/twec.12179
M3 - Article
VL - 37
SP - 765
EP - 782
JO - World Economy
JF - World Economy
SN - 0378-5920
IS - 6
ER -