The cost of the travel ban to high-tech firms: An event study

Euikyu Choi (), Wei Du () and Michael Malcolm ()
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Euikyu Choi: West Chester University
Wei Du: West Chester University
Michael Malcolm: West Chester University

Economics Bulletin, 2019, vol. 39, issue 1, 64-72

Abstract: We study the impact of the Trump administration's travel ban on the stock prices of high-tech firms. Using an event study analysis, we find that these firms experienced an average abnormal return of approximately −0.6% on the first trading day after its announcement. We show that these abnormal losses were larger for firms with higher R&D expenditures, but smaller for globalized firms with business segments located outside of the US.

Keywords: event study; immigration; research and development; abnormal returns; human capital (search for similar items in EconPapers)
JEL-codes: G1 J6 (search for similar items in EconPapers)
Date: 2019-01-10
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