Speaker
Management Research Seminar Series, conducted by the Department of Economics and Business, aims to bring accomplished researchers in the Management field to share their current research projects to facilitate an academic discussion, enhance knowledge, and discover potential connections. The series is designed for the academic audience, i.e., the Faculty and MA, PhD students; however, anyone interested in the series is welcome to attend.
On December 7, Dr. Sinziana Dorobantu from NYU will join the Management Research Seminar Series. The event will be in-person and on Zoom. For details, lease email senyuza@ceu.edu or Yurteri_Sidar@phd.ceu.edu.
Title: Nationalism, Firm Place Identity, and Firm Value: Evidence from the Catalan Secession Crisis
Abstract: We study the effect of nationalism-induced political uncertainty on firm value and show that firms more strongly identified with a place—firms with strong place identity—are more affected by political uncertainty caused by nationalist events than other firms. Our analysis of firm value during the 2017 Catalan constitutional crisis shows that nationalism-induced political uncertainty affected firms more strongly identified with Catalonia more severely. We argue that the heterogenous effect on firms is due to investors’ expectations that firms with strong Catalan identity are less likely to make strategic adjustments—such as relocating firm headquarters—that mitigate the effects of nationalism. We confirm this mechanism by showing that both publicly traded and private firms with strong place identity are less likely to relocate their headquarters.