TY  - BOOK
AU  - Hart,Oliver D.
AU  - Thesmar,David
AU  - Zingales,Luigi
ED  - National Bureau of Economic Research.
TI  - Private Sanctions
T2  - NBER working paper series
PY  - 2022///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
KW  - International Conflicts • Negotiations • Sanctions
KW  - jelc
KW  - General
KW  - Business Objectives of the Firm
N1  - December 2022; Hardcopy version available to institutional subscribers
N2  - We survey a representative sample of the U.S. population to understand stakeholders' desire to see their firms exit Russia after the invasion of Ukraine. 61% of respondents think that firms should exit Russia, regardless of the consequences. Only 37% think that leaving Russia is a purely business decision. If a firm does not conform with these desires, 66% of the respondents are willing to boycott it. This desire diminishes with the costs they face in boycotting. At $500, 43% would want to boycott. This propensity to boycott is high, even for participants who are told they have no impact, suggesting strong deontological concerns. Nevertheless, it is difficult to separate deontological and consequentialist motives to boycott, because subjects' beliefs about "impact" are highly correlated with their willingness to act "whatever the consequences". When we randomize beliefs about impact, we find a clear effect for shareholders, but not for the other stakeholders. We discuss what are the geopolitical and economic implications of a world where private corporations may discontinue profitable business relationships for moral or political reasons
UR  - https://www.nber.org/papers/w30728
UR  - http://dx.doi.org/10.3386/w30728
ER  -