Resident Networks and Corporate Connections: Evidence from World War II Internment Camps

• 成果类型: Article
• 署名作者: Cohen, Lauren; Gurun, Umit G.; Malloy, Christopher
• 署名单位: Harvard University; National Bureau of Economic Research; University of Texas System; University of Texas Dallas
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12407
• 发表日期: 2017
• 页码: 207-248
• 关键词: INTERNATIONAL-TRADE; Market entry; social networks; IMPACT; determinants; INFORMATION; FIRMS; underreaction; momentum; BUSINESS

摘要

Using customs and port authority data, we show that firms are significantly more likely to trade with countries that have a large resident population near their firm headquarters, and that these connected trades are their most valuable international trades. Using the formation of World War II Japanese internment camps to isolate exogenous shocks to local ethnic populations, we identify a causal link between local networks and firm trade. Firms are also more likely to acquire target firms, and report increased segment sales, in connected countries. Our results point to a surprisingly large role of immigrants as economic conduits for firms.