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

Andrea Bassanini, Eve Caroli (), Kevin Geay and Antoine Rebérioux ()
Additional contact information
Eve Caroli: PSL Université Paris Dauphine
Kevin Geay: Université Paris 1 Panthéon-Sorbonne
Antoine Rebérioux: Université de Paris

No 16748, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: 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.

Keywords: social embeddedness; layoffs; non-monetary costs; CEO (search for similar items in EconPapers)
JEL-codes: J63 M12 M51 R12 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2024-01
New Economics Papers: this item is included in nep-lab
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Published - published in: Industrial and Corporate Change , 2024, 33 (5), 1253–1270

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Related works:
Journal Article: Heavy is the crown: CEOs’ social interactions and layoff decisions (2024)
Working Paper: Heavy is the Crown: CEOs' Social Interactions and Layoff Decisions (2023)
Working Paper: Heavy is the Crown: CEOs' Social Interactions and Layoff Decisions (2023)
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