EconPapers    
Economics at your fingertips  
 

On Target? The Incidence of Sanctions Across Listed Firms in Iran

Mirko Draca, Jason Garred (), Stickland. Leanne and Nele Warrinnier
Additional contact information
Mirko Draca: University of Warwick
Stickland. Leanne: University of Warwick
Nele Warrinnier: KU Leuven

The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics

Abstract: How successful are sanctions at targeting the economic interests of political elites in affected countries? We study the efficacy of targeting in the case of Iran, using information on the stock exchange-listed assets of two specific political entities with substantial influence over the direction of Iran’s nuclear program. Our identification strategy focuses on the process of negotiations for sanctions removal, examining which interests benefit most from news about diplomatic progress. We find that the stock returns of firms owned by targeted political elites respond especially sharply to such news, though other listed firms unconnected to these elites also benefit from progress towards sanctions relief. These results indicate the ‘bluntness’ of sanctions on Iran, but also provide evidence of their effectiveness in generating economic incentives for elite policymakers to negotiate a deal for sanctions relief.

JEL-codes: F51 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ara and nep-cwa
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://warwick.ac.uk/fac/soc/economics/research/w ... twerp_1217_draca.pdf

Related works:
Working Paper: On Target? The Incidence of Sanctions Across Listed Firms in Iran (2019) Downloads
Working Paper: On Target? The Incidence of Sanctions Across Listed Firms in Iran (2019) Downloads
Working Paper: On Target? The Incidence of Sanctions Across Listed Firms in Iran (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wrk:warwec:1217

Access Statistics for this paper

More papers in The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Margaret Nash ().

 
Page updated 2019-11-09
Handle: RePEc:wrk:warwec:1217