Ownership, Branding and Multiple Audience Concerns: Evidence from Nursing Homes

42 Pages Posted: 30 Aug 2011 Last revised: 13 Aug 2012

See all articles by James A. Brickley

James A. Brickley

University of Rochester - Simon Business School

Susan F. Lu

Purdue University - Krannert School of Management

Gerard J. Wedig

University of Rochester - Simon Business School

Date Written: August 28, 2011

Abstract

Multi-unit ownership and branding are separate decisions and non-consumer audiences can affect both. In this study we distinguish between the branding and chaining decisions of nursing homes, while measuring the effects of litigation and labor unions on these decisions. Chaining (independent of branding) is more likely in “right to work” states and where capital requirements are high. Branding is less likely where laws are favorable to patient litigation or unionization. Potential litigation and unionization negatively impact branding more so than chaining because branding communicates a chain’s “deep pockets”, making it vulnerable to costly rent seeking by outside audiences.

Keywords: brand reputation, horizontal ownership, litigation, unionization

JEL Classification: L1, L2, D23, K3, I1

Suggested Citation

Brickley, James A. and Lu, Susan Feng and Wedig, Gerard J., Ownership, Branding and Multiple Audience Concerns: Evidence from Nursing Homes (August 28, 2011). Simon School Working Paper No. FR 11-26, Available at SSRN: https://ssrn.com/abstract=1918460 or http://dx.doi.org/10.2139/ssrn.1918460

James A. Brickley (Contact Author)

University of Rochester - Simon Business School ( email )

Carol Simon Hall 3-160L
Rochester, NY 14627
United States
585-275-3433 (Phone)
585-442-6323 (Fax)

Susan Feng Lu

Purdue University - Krannert School of Management ( email )

1310 Krannert Building
West Lafayette, IN 47907-1310
United States

HOME PAGE: http://https://sites.google.com/site/susanluhome/home

Gerard J. Wedig

University of Rochester - Simon Business School ( email )

Rochester, NY 14627
United States

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