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The cost of the travel ban to high-tech firms: An event study

Author

Listed:
  • Euikyu Choi

    (West Chester University)

  • Wei Du

    (West Chester University)

  • Michael Malcolm

    (West Chester University)

Abstract

We study the impact of the Trump administration's travel ban on the stock prices of high-tech firms. Using an event study analysis, we find that these firms experienced an average abnormal return of approximately −0.6% on the first trading day after its announcement. We show that these abnormal losses were larger for firms with higher R&D expenditures, but smaller for globalized firms with business segments located outside of the US.

Suggested Citation

  • Euikyu Choi & Wei Du & Michael Malcolm, 2019. "The cost of the travel ban to high-tech firms: An event study," Economics Bulletin, AccessEcon, vol. 39(1), pages 64-72.
    • Handle: RePEc:ebl:ecbull:eb-18-00610
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    event study; immigration; research and development; abnormal returns; human capital;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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