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Where the Headquarters Are: Location Patterns of Large Public Companies, 1990-2000

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  • Thomas H. Klier

    (Federal Reserve Bank of Chicago)

Abstract

This article examines the location of headquarters growth of large public companies during the 1990s. Headquarters continue to be attracted by large metropolitan areas. Yet among that group, they continue to disperse into medium-sized centers. This article identifies six different categories of gross flows underlying the net change of headquarters observed during the 1990s. There is strong variation among the 50 largest metropolitan areas in terms of the composition of these gross flows. On average, entry and exit represent more than two thirds of all gross flow activity. Pure relocation of headquarters is found to lead to urbanization. Mergers tend to have no impact on the distribution of headquarters across Metropolitan Statistical Areas (MSAs). A binomial probability model of the decision to move uses company-level and MSA-level data and finds that MSA-level amenities affect a company’s choice about where to locate its headquarters.

Suggested Citation

  • Thomas H. Klier, 2006. "Where the Headquarters Are: Location Patterns of Large Public Companies, 1990-2000," Economic Development Quarterly, , vol. 20(2), pages 117-128, May.
    • Handle: RePEc:sae:ecdequ:v:20:y:2006:i:2:p:117-128
    DOI: 10.1177/0891242405286158
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    References listed on IDEAS

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    1. Thomas H. Klier, 2002. "Location of headquarter growth during the 90s," Working Paper Series WP-02-19, Federal Reserve Bank of Chicago.
    2. Leon Shilton & Craig Stanley, 1999. "Spatial Patterns of Headquarters," Journal of Real Estate Research, American Real Estate Society, vol. 17(3), pages 341-364.
    3. Robert DeYoung, 2004. "Why Bank One left Chicago: one piece in a bigger puzzle," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue Apr.
    4. Thomas H. Klier & William A. Testa, 2002. "Location trends of large company headquarters during the 1990s," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 26(Q II), pages 12-26.
    5. Robert DeYoung & Thomas H. Klier, 2004. "Why Bank One left Chicago: One piece in a bigger puzzle," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue Apr.
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    Cited by:

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    2. Calluzzo, Paul & Wang, Wei & Wu, Serena, 2021. "SEC scrutiny shopping," Journal of Corporate Finance, Elsevier, vol. 67(C).
    3. Shelley McDonough Kimelberg & Lauren A. Nicoll, 2012. "Business Location Decisions in the Medical Device Industry," Economic Development Quarterly, , vol. 26(1), pages 34-49, February.
    4. Fatemi, Ali & Fooladi, Iraj & Sy, Oumar & Zaman, Ashraf, 2024. "Corporate headquarters relocation and CSR performance," International Review of Economics & Finance, Elsevier, vol. 89(PB), pages 622-637.
    5. Park, Jeong-Il & Lee, Sugie, 2017. "Examining the spatial patterns of green industries and the role of government policies in South Korea: Application of a panel regression model (2006–2012)," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 614-623.
    6. Chen, Shuo & Yan, Xun & Yang, Bo, 2020. "Move to success? Headquarters relocation, political favoritism, and corporate performance," Journal of Corporate Finance, Elsevier, vol. 64(C).
    7. Brian T. McCann & Jeffrey J. Reuer & Nandini Lahiri, 2016. "Agglomeration and the choice between acquisitions and alliances: An information economics perspective," Strategic Management Journal, Wiley Blackwell, vol. 37(6), pages 1085-1106, June.
    8. Coulson, N. Edward & Liu, Crocker H. & Villupuram, Sriram V., 2013. "Urban economic base as a catalyst for movements in real estate prices," Regional Science and Urban Economics, Elsevier, vol. 43(6), pages 1023-1040.

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