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dc.contributor.authorCohen, Lauren Harry
dc.contributor.authorGurun, Umit G.
dc.contributor.authorMalloy, Christopher James
dc.date.accessioned2012-08-07T19:12:43Z
dc.date.issued2012-08-07
dc.identifier.citationCohen, Lauren, Umit G. Gurun, and Christopher J. Malloy. "Channels of Influence." Harvard Business School Working Paper, No. 13-013, August 2012en_US
dc.identifier.urihttp://nrs.harvard.edu/urn-3:HUL.InstRepos:9369295
dc.description.abstractWe 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.isoen_USen_US
dash.licenseOAP
dc.subjectInformation networksen_US
dc.subjecttrade linksen_US
dc.subjectfirm behavioren_US
dc.titleChannels of Influenceen_US
dc.typeResearch Paper or Reporten_US
dc.description.versionAuthor's Originalen_US
dc.relation.journalHarvard Business School working paper seriesen_US
dash.depositing.authorMalloy, Christopher James
dc.date.available2012-08-07T19:12:43Z
dash.contributor.affiliatedMalloy, Christopher
dash.contributor.affiliatedCohen, Lauren


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