smallbar.gif (1928 bytes)
Devising a Corporate Facility Location Strategy to Maximize Shareholder Wealth

Author: Chris Manning, Mauricio Rodriguez and Chinmoy Ghosh

Start Page: 321
End Page: 340
Volume: 17
Issue Number: 3
Year: 1999
Publication: Journal of Real Estate Research

Abstract: Location decisions should consider all related impacts upon a firm’s shareholder wealth. Overall, firm cost savings available at alternative locations need to be carefully examined in addition to a location’s impact on corporate sales revenues. This article reviews relevant literature, discusses recent location decision considerations for several companies and empirically tests a model seeking to measure the impact corporate relocation decisions have upon shareholder wealth. In addition, a classification and listing of corporate location considerations is put forth to supplement the anecdotal illustrations discussed herein. Together these represent a "primer" for professionals and executives involved in corporate facility location decisions.

down1.gif (981 bytes)