Country Reputation and Corporate Activity

Mehmet I. Canayaz, Alper Darendeli

Research output: Contribution to journalArticlepeer-review

1 Scopus citations


We study the link between a previously neglected formof intangible firmasset-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 foreignmarkets. 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.

Original languageEnglish (US)
Pages (from-to)1483-1504
Number of pages22
JournalManagement Science
Issue number3
StatePublished - Mar 2024

All Science Journal Classification (ASJC) codes

  • Strategy and Management
  • Management Science and Operations Research

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