Return to Office policies are more likely in companies with older, male CEOs, after poor sales figures and have no impact on future profits…
Posted 22nd October 2024 • Written by Nick Bloom on LinkedIn • • • • • •
Three papers analyzed 1200+ US Return to Office (RTO) policies, all presented at the Stanford conference this week. Summary findings:
A) RTOs have no impact on *future* profits or stock returns
B) RTOs are more likely after poor *historic* profits and stock returns
C) RTOs are more likely in companies with older, male CEOs
D) RTOs are more likely for companies in large cities with cheap office space
E) RTOs lead to the exit of employees, particularly more tenured employees
F) RTOs lead to reductions in employee sentiment (e.g. on Glassdoor)
Collectively, they appear to be some mix of:
1) Driven by CEO personal views - CEO age and gender matter a lot
2) Policies to reverse/bury bad news - they happen after results turn bad
3) Headcount reductions/delayering - employees quit, particularly managers
Source papers:
- "Determinants and Consequences of Return to Office Policies" by Sean F., Andra Ghent and Vasudha Nair, 2024 Cornell and Utah research paper
- "Return to Office Mandates" by Mark Ma, 2024, Pittsburgh research paper
- "Return to office and tenure distribution" by David Van Dijcke, Florian Gunsilius and Austin L. Wright 2024 Chicago, Emory and Michigan research paper
To read the original article: https://tinyurl.com/ycxxhc2j