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Multi-plant operation and corporate headquarters separation: Evidence from Japanese plant-level

Author

Listed:
  • Toshihiro Okubo

    (Faculty of Economics, Keio University)

  • Eiichi Tomiura

    (Graduate School of Economics, Hitotsubashi University)

Abstract

This paper shows (i) under what circumstances corporate headquarters (HQs) are separated from production plants and (ii) what type of plants are operated by multi-plant firms. By analyzing Japanese plant-level panel data from manufacturing census, we find that large-sized plants or plants intensively purchasing materials significantly tend to be separated from HQs and become a part of multi-plant operations. This pattern suggests an impact of managerial burden. We confirm the robustness of our main findings by dynamic switching patterns of plant status. Factors of economic geography, such as distance from core, also have noticeable impacts.

Suggested Citation

  • Toshihiro Okubo & Eiichi Tomiura, 2016. "Multi-plant operation and corporate headquarters separation: Evidence from Japanese plant-level," Keio-IES Discussion Paper Series 2016-016, Institute for Economics Studies, Keio University.
  • Handle: RePEc:keo:dpaper:2016-016
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    File URL: http://ies.keio.ac.jp/upload/pdf/en/DP2016-016.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Corporate headquarters; Multi-plant operation;

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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