Trade Efficiency of Advanced Factors, Headquarter Relocation and Firm Growth
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| Title | Trade Efficiency of Advanced Factors, Headquarter Relocation and Firm Growth
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| Author | Lu Di,Ju Xiaosheng and Tan Qi |
| Organization | RenMin University; National University of Defense Technology |
| Email | dl1@soas.ac.uk；fuxiao0912@163.com |
| Key Words | Trade Efficiency of Advanced Factors; Headquarter Relocation; Firm Growth; Performance |
| Abstract | This paper uses a micro data set on the relocation of listed companies from 2004 to 2012 to investigate the performance of headquarter relocation. Our results show that the trade efficiency of local advanced factors is an important role that influences the company’s relocating decision. The performance of headquarter relocation depends on migration distance. Those migration crossing over cities or provinces improve performance strongly through enlarging scale of production, while those migrations within city have weak financial performance improvement but more innovation investment. Those findings are robust when considering selection bias and other endogenous problems. Our study shows headquarter relocation is one way for companies to enjoy higher trade efficiency of advanced factors, by which realizes faster growth. |
| Serial Number | WP807 |
| Time | 2015-01-20 |
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