IDEAS home Printed from https://ideas.repec.org/a/sae/ecdequ/v20y2006i2p117-128.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0891242405286158
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0891242405286158?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Thomas H. Klier, 2002. "Location of headquarter growth during the 90s," Working Paper Series WP-02-19, Federal Reserve Bank of Chicago.
    2. Robert DeYoung, 2004. "Why Bank One left Chicago: one piece in a bigger puzzle," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue Apr.
    3. Leon Shilton & Craig Stanley, 1999. "Spatial Patterns of Headquarters," Journal of Real Estate Research, American Real Estate Society, vol. 17(3), pages 341-364.
    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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Matthew Tonts & Michael Taylor, 2010. "Corporate Location, Concentration and Performance: Large Company Headquarters in the Australian Urban System," Urban Studies, Urban Studies Journal Limited, vol. 47(12), pages 2641-2664, November.
    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. William A. Testa, 2006. "Headquarters Research and Implications for Local Development," Economic Development Quarterly, , vol. 20(2), pages 111-116, May.
    2. Pantzalis, Christos & Park, Jung Chul, 2014. "Too close for comfort? Geographic propinquity to political power and stock returns," Journal of Banking & Finance, Elsevier, vol. 48(C), pages 57-78.
    3. Richard Gregory & John R. Lombard & Bruce Seifert, 2005. "Impact of Headquarters Relocation on the Operating Performance of the Firm," Economic Development Quarterly, , vol. 19(3), pages 260-270, August.
    4. Jian Xu & Xi Yang & Daqi Xin & Wencang Zhou & Xiaoyang Zhu, 2019. "Firm Location And Innovation: Evidence From Chinese Listed Firms," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 24(04), pages 1-20, December.
    5. George A. Erickcek & Hannah McKinney, 2004. "Small Cities Blues: Looking for Growth Factors in Small and Medium-Sized Cities," Upjohn Working Papers 04-100, W.E. Upjohn Institute for Employment Research.
    6. Beckstead, Desmond Brown, W. Mark, 2006. "Head Office Employment in Canada, 1999 to 2005," Insights on the Canadian Economy 2006014e, Statistics Canada, Economic Analysis Division.
    7. Duranton, Gilles & Puga, Diego, 2005. "From sectoral to functional urban specialisation," Journal of Urban Economics, Elsevier, vol. 57(2), pages 343-370, March.
    8. Strauss-Kahn, Vanessa & Vives, Xavier, 2009. "Why and where do headquarters move?," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 168-186, March.
    9. Allen C. Goodman & Brent C Smith, 2023. "Medical Service Quality and Office Rent Premiums: Reputation Spillovers," The Journal of Real Estate Finance and Economics, Springer, vol. 66(3), pages 680-708, April.
    10. Beckstead, Desmond Brown, W. Mark, 2006. "L'emploi dans les sièges sociaux au Canada, de 1999 à 2005," Aperçus sur l'économie canadienne 2006014f, Statistics Canada, Division de l'analyse économique.
    11. Christos Pantzalis & Jung Chul Park, 2020. "Stock Market Consequences Of Political Vibrancy," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 43(3), pages 491-542, August.
    12. repec:zbw:bofrdp:2012_017 is not listed on IDEAS
    13. Baldwin, John R. Brown, W. Mark, 2005. "Foreign Multinationals and Head Office Employment in Canadian Manufacturing Firms," Economic Analysis (EA) Research Paper Series 2005034e, Statistics Canada, Analytical Studies Branch.
    14. Song, Moohoun & Orazem, Peter & Singh, Rajesh, 2006. "Broadband Access, Telecommuting and the Urban-Rural Digital Divide," Staff General Research Papers Archive 12495, Iowa State University, Department of Economics.
    15. Matthew Tonts & Michael Taylor, 2010. "Corporate Location, Concentration and Performance: Large Company Headquarters in the Australian Urban System," Urban Studies, Urban Studies Journal Limited, vol. 47(12), pages 2641-2664, November.
    16. Perttu Kähäri & Iiris Saittakari & Rebecca Piekkari & Wilhelm Barner-Rasmussen, 2017. "Explaining Mandate Loss of Regional Headquarters: The Difference between Full and Partial Loss," Journal of Management Studies, Wiley Blackwell, vol. 54(8), pages 1206-1240, December.
    17. Bryan W. Husted & Dima Jamali & Walid Saffar, 2016. "Near and dear? The role of location in CSR engagement," Strategic Management Journal, Wiley Blackwell, vol. 37(10), pages 2050-2070, October.
    18. Francis, Bill B. & Hasan, Iftekhar & John, Kose & Waisman, Maya, 2016. "Urban Agglomeration and CEO Compensation," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 51(6), pages 1925-1953, December.
    19. Leon Shilton & Craig Stanley, 1999. "The Survival and Birth of Firms," Journal of Real Estate Research, American Real Estate Society, vol. 17(2), pages 169-188.
    20. Ono, Yukako, 2003. "Outsourcing business services and the role of central administrative offices," Journal of Urban Economics, Elsevier, vol. 53(3), pages 377-395, May.
    21. Shahid Ali & Junrui Zhang & Muhammad Usman & Farman Ullah Khan & Amir Ikram & Bilal Anwar, 2019. "Sub-National Institutional Contingencies and Corporate Social Responsibility Performance: Evidence from China," Sustainability, MDPI, vol. 11(19), pages 1-21, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ecdequ:v:20:y:2006:i:2:p:117-128. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.