Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/240383 
Year of Publication: 
2021
Series/Report no.: 
BOFIT Discussion Papers No. 5/2021
Publisher: 
Bank of Finland, Bank of Finland Institute for Emerging Economies (BOFIT), Helsinki
Abstract: 
This paper uses textual analysis to examine how European corporations assess sanctions in their annual reports. Using observations from a panel of almost 11,500 corporate annual reports from 2014-2017, we document significant cross-country variation in how firms perceive Russia-related sanctions. Even after controlling for firm-level characteristics, cross-country differences remain for sentiments about sanctions and contexts in which sanctions are mentioned. We also examine the role of macroeconomic linkages in explaining these differences. We show that the Russia's inward and outward FDI stocks and high levels of imports and exports with Russia only partially explain the cross-country variation, leaving a nontrivial share of variation unexplained.
Subjects: 
sanctions
textual analysis
European firms
annual reports
JEL: 
D22
F51
Persistent Identifier of the first edition: 
ISBN: 
978-952-323-372-0
Document Type: 
Working Paper

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