Country Reputation and Corporate Activity

• 成果类型: Article
• 署名作者: Canayaz, Mehmet I.; Darendeli, Alper
• 署名单位: Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; Nanyang Technological University
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2023.4753
• 发表日期: 2024
• 页码: 1483-1504
• 关键词: intangible assets; country reputation risk; Multinational corporations; corporate sales; Marketing; advertising and media

摘要

We study the link between a previously neglected form of intangible firm asset- country reputation-and corporate sales. By exploiting variation in nationalities of foreign victims in local terror attacks, we detect unanticipated distortions in reputations of local countries in foreign countries and we pin down reductions in sales of local country firms in foreign markets. The reductions in sales are economically and statistically significant, persistent, and more pronounced after attacks with high levels of foreign media coverage. Local country firms, whose names resemble names from their countries of origin, experience greater deteriorations in their sales. The distortions in country reputations are associated with depreciations in overall firm value, sales growth, and profitability.