We develop a theory of non-monetary costs incurred by CEOs when deciding about layoffs and test its predictions on French data. Our results support the idea that, being embedded in their social environment, CEOs find it more difficult to fire employees closer to their own workplace. This effect...

We develop a theory of non-monetary costs incurred by CEOs when deciding about layoffs and test its predictions on French data. Our results support the idea that, being embedded in their social environment, CEOs find it more difficult to fire employees closer to their own workplace. This effect...

We all know people we find difficult to deal with. Some we trust despite major past transgressions, others we do not. What explains the difference? Rather than looking for explanations inside the trustor–trustee dyad, we focus on the embedding social structure. Our argument focuses on two...