Draca, Mirko, Garred, Jason, Stickland, Leanne and Warrinnier, Nele (2019) On target? The incidence of sanctions across listed firms in Iran. Working Paper. Coventry: University of Warwick. Department of Economics. Warwick economics research papers series (WERPS) (1217). (Unpublished)

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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.

Item Type:	Working or Discussion Paper (Working Paper)
Alternative Title:
Subjects:	H Social Sciences > HF Commerce J Political Science > JX International law
Divisions:	Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH):	Economic sanctions -- Iran, Iran -- Foreign economic relations
Series Name:	Warwick economics research papers series (WERPS)
Publisher:	University of Warwick. Department of Economics
Place of Publication:	Coventry
ISSN:	0083-7350
Official Date:	July 2019
Dates:	Date Event July 2019 Published
Number:	1217
Number of Pages:	60
Institution:	University of Warwick
Status:	Not Peer Reviewed
Publication Status:	Unpublished
Access rights to Published version:	Open Access (Creative Commons)
Description:	This paper also appears as CAGE Discussion paper 372
Date of first compliant deposit:	22 July 2019
Date of first compliant Open Access:	24 July 2019
RIOXX Funder/Project Grant:	Project/Grant ID RIOXX Funder Name Funder ID UNSPECIFIED KU Leuven http://dx.doi.org/10.13039/501100004040 G074718N Fonds Wetenschappelijk Onderzoek http://dx.doi.org/10.13039/501100003130 UNSPECIFIED University of Warwick http://dx.doi.org/10.13039/501100000741

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