Published in:Pace University Finance Research Paper ; No. 2011/07
Extent:
1 Online-Ressource (43 p)
Language:
English
DOI:
10.2139/ssrn.1921309
Identifier:
Origination:
Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments August 28, 2011 erstellt
Description:
We argue that international trade is a significant conduit of foreign political uncertainty into U.S. markets. We find that industries that export considerable shares of their output to countries with high political risk or countries that hold national elections in a given year experience suboptimal investment efficiency, slower total factor productivity growth, lower valuation, and worse accounting performance. Our results are not driven by economic risk or the quality of institutional environment of trading-partner countries, and they remain robust when we account for potential endogeneity of export flows