Heavy Is the Crown: CEOs' Social Interactions and Layoff Decisions

Arbeitspapier

We develop a theory of non-monetary costs incurred by CEOs when deciding about layoffs and test its predictions on French data. Our results support the idea that, being embedded in their social environment, CEOs find it more difficult to fire employees closer to their own workplace. This effect is stronger whenever social interactions are less anonymous in the CEOs' local environment. It is weaker when CEOs live further away from where they work, because of limited exposure to local discontent.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 16748

Classification and Topics

• Classification: Wirtschaft ; Labor Turnover; Vacancies; Layoffs ; Personnel Management; Executives; Executive Compensation ; Personnel Economics: Firm Employment Decisions; Promotions ; Size and Spatial Distributions of Regional Economic Activity
• Subject: CEO ; non-monetary costs ; layoffs ; social embeddedness

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bassanini, Andrea ; Caroli, Eve ; Geay, Kevin ; Rebérioux, Antoine
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2024

Further information

• Last update: 10.03.2025, 11:42 AM CET