Kexin Bai and Quan Li (presenter) “Navigating Targeted Sanctions: A Real Options Theory of American Firm Responses and Financial Performance”
Abstract: Do targeted sanctions hurt American firms financially? Existing research offers competing arguments but little firm-level evidence on financial fundamentals. We shift the debate from aggregate sender costs to response-conditional performance. Our real options theory shows that partial, evolving sanctions present firms with binary choices depending on their starting position. Prior suppliers stay or exit; […]