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A recent study shows that California-based companies are leaving the Golden State at a rapid pace.
The Hoover Institution at Standford University found that California lost 74 headquarters within the first six months of 2021. Researchers are calling the move a "serious loss," especially since the state saw a total of 62 companies relocate out of California last year.
But if all of these companies are moving out, where are they heading?
According to the study, most of these companies relocated their headquarters to Texas. Out of the 265 known California companies that have moved, 114 of them went to the Lone Star State between January 2018 to June 2021.
Researchers say Texas has been "the most popular location for California company relocations" for many years. Arizona came in the No. 2 spot, and Nevada ranked at No. 3.
The report also cited Chief Executive magazine's annual survey of CEOs. In the findings, Texas ranked as the top state to do business in for 2021 while California ranked at the very bottom -- No. 50. The San Francisco Bay area accounted for five out of the 10 California counties that saw the most company departures, FOX 5 wrote.
Analysts found multiple factors for the headquarter exits, but the chief concern was high taxes and the many regulations in the state. Some companies also sought less expensive locations "to control business costs" and "lure workers who want to avoid living in ultra-expensive Silicon Valley or San Francisco."
Click here if you want to read the full report by the Hoover Institution.