Do Managers Give Hometown Labor an Edge?
研究发现，当行业不景气时，靠近CEO家乡的企业机构裁员和降薪更少，也更少被剥离，但这种偏袒只在公司治理薄弱时出现，暗示其可能损害企业价值。
In line with the psychological theory of place attachments, managers favor hometown workers over others. Consistent with this prediction, I find that following periods of industry distress, establishments located near CEOs’ childhood homes experience fewer employment and pay reductions and are less likely to be divested relative to other firm establishments. While it is not possible to directly test whether this employment bias destroys firm value, managers only implement these policies when governance is weak, suggesting that this favoritism is suboptimal. Together, these results provide direct evidence of employee favoritism and show that idiosyncratic manager styles impact corporate employment decisions. Received December 23, 2013; editorial decision January 3, 2017 by Editor Alexander Ljungqvist.