Channels of Influence

Channels of Influence

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Channels of Influence

dc.contributor.author	Cohen, Lauren Harry
dc.contributor.author	Gurun, Umit G.
dc.contributor.author	Malloy, Christopher James
dc.date.accessioned	2012-08-07T19:12:43Z
dc.date.issued	2012-08-07
dc.identifier.citation	Cohen, Lauren, Umit G. Gurun, and Christopher J. Malloy. "Channels of Influence." Harvard Business School Working Paper, No. 13-013, August 2012	en_US
dc.identifier.uri	http://nrs.harvard.edu/urn-3:HUL.InstRepos:9369295
dc.description.abstract	We demonstrate that simply by using the ethnic makeup surrounding a firm’s location, we can predict, on average, which trade links are valuable for firms. Using customs and port authority data on the international shipments of all U.S. publicly-traded firms, we show that firms are significantly more likely to trade with countries that have a strong resident population near their firm headquarters. We use the formation of World War II Japanese Internment Camps to isolate exogenous shocks to local ethnic populations, and identify a causal link between local networks and firm trade links. Firms that exploit their local networks (strategic traders) see significant increases in future sales growth and profitability, and outperform other importers and exporters by 5%-7% per year in risk-adjusted stock returns. In sum, our results document a surprisingly large impact of immigrants’ economic role as conduits of information for firms in their new countries.	en_US
dc.language.iso	en_US	en_US
dash.license	OAP
dc.subject	Information networks	en_US
dc.subject	trade links	en_US
dc.subject	firm behavior	en_US
dc.title	Channels of Influence	en_US
dc.type	Research Paper or Report	en_US
dc.description.version	Author's Original	en_US
dc.relation.journal	Harvard Business School working paper series	en_US
dash.depositing.author	Malloy, Christopher James
dc.date.available	2012-08-07T19:12:43Z