Ownership, Branding and Multiple Audience Concerns: Evidence from Nursing Homes
42 Pages Posted: 30 Aug 2011 Last revised: 13 Aug 2012
Date Written: August 28, 2011
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: Suggested Citation