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An Overview of German Centers of Corporate Dominance and Motives for Corporate Headquarters Relocation

Author

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  • Ladislav Tyll
  • Mohit Srivastava
  • Florián Brezina

Abstract

The purpose of this paper is to identify the centers of corporate dominance in Germany, and the main drivers of recent headquarter relocations within the country. The analysis is based on a literature review, a database comprising the 10,000 most significant companies in Germany and additional research for qualitative input to support the interpretation of the findings. The findings show that corporate dominance in Germany is decentralized. Centers with relative corporate dominance tend to host a higher proportion of public limited companies. These public limited companies had a turnover of over one billion Euros, and most of these companies were founded after the year 2000. The main drivers for recent HQ relocations were corporate restructuring (mergers and demergers) and the centralization of functions. Furthermore, it has been found that differences in the trade tax burden between municipalities have had no influence on recent relocation decisions within Germany.

Suggested Citation

  • Ladislav Tyll & Mohit Srivastava & Florián Brezina, 2018. "An Overview of German Centers of Corporate Dominance and Motives for Corporate Headquarters Relocation," Central European Business Review, Prague University of Economics and Business, vol. 2018(4), pages 61-79.
    • Handle: RePEc:prg:jnlcbr:v:2018:y:2018:i:4:id:206:p:61-79
    DOI: 10.18267/j.cebr.206
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    References listed on IDEAS

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    1. 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.
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    3. Michael E. Porter, 1996. "Competitive Advantage, Agglomeration Economies, and Regional Policy," International Regional Science Review, , vol. 19(1-2), pages 85-90, April.
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    5. Martin Machek, 2012. "Retail Market Structure Development in Central Europe," Central European Business Review, Prague University of Economics and Business, vol. 2012(3), pages 22-27.
    6. Guangyu Ye & Qingliang Wan & Jingling Chen, 2011. "Political resources, business model and headquarters location of private enterprises," Nankai Business Review International, Emerald Group Publishing Limited, vol. 2(2), pages 172-194, June.
    7. Clausing, Kimberly A., 2010. "Should Tax Policy Target Multinational Firm Headquarters?," National Tax Journal, National Tax Association;National Tax Journal, vol. 63(4), pages 741-763, December.
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    Cited by:

    1. Biyue Lin & Shoukat Iqbal Khattak & Bei Zhao, 2021. "To Relocate Or Not to Relocate: A Logit Regression Model of Factors Influencing Corporate Headquarter Relocation Decision in China," SAGE Open, , vol. 11(3), pages 21582440211, July.

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    More about this item

    Keywords

    Germany; centers of corporate dominance; headquarter relocation; HQ relocation drivers;
    All these keywords.

    JEL classification:

    • M30 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - General
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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