Stakeholder proximity and discontinued operations
Lori N.K. Leonard & Li Sun
What the paper says
Purpose This study aims to investigate the relation between stakeholder proximity and the likelihood of reporting discontinued operations (DO). Design/methodology/approach The analysis is based on 31,799 firm-year observations from publicly listed firms in the USA over the period 1992–2023. Stakeholder proximity is proxied by firms’ headquarters location, with urban firms defined as those headquartered in one of the ten largest USA metropolitan areas. We examine its association with discontinued-operations reporting using multivariate regression models. Findings The results show a significant positive association between stakeholder proximity and the likelihood of reporting DO. Firms headquartered closer to key stakeholders are more likely to discontinue business segments, consistent with the view that geographic proximity intensifies external scrutiny and stakeholder pressure. Originality/value This study provides new evidence on how firms’ geographic positioning relative to stakeholders influences both reporting choices and operational restructuring decisions. By linking stakeholder proximity to DO, it extends the literature on geographic effects in accounting and corporate strategy.
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.50 × 0.4 = 0.20 |
| M · momentum | 0.50 × 0.15 = 0.07 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.