Who cares about sanctions? Observations from annual reports of European firms

Denis Davydov, Jukka Sihvonen, Laura Solanko

Research output: Book/ReportCommissioned report


This paper uses textual analysis to examine how European corporations assess sanctions in their annual reports. Using observations from a panel of almost 11,500 corporate annual reports from 2014–2017, we document significant cross-country variation in how firms perceive Russia-related sanctions. Even after controlling for firm-level characteristics, cross-country differences remain for sentiments about sanctions and contexts in which sanctions are mentioned. We also examine the role of macroeconomic linkages in explaining these differences. We show that the Russia’s inward and outward FDI stocks and high levels of imports and exports with Russia only partially explain the cross-country variation, leaving a nontrivial share of variation unexplained.
Original languageEnglish
Publication statusPublished - 20.04.2021
MoE publication typeD4 Published development or research report or study

Publication series

NameBOFIT Discussion Papers
PublisherBank of Finland
ISSN (Print)1456-5889


  • 512 Business and Management
  • sanctions
  • textual analysis
  • annual reports
  • European firms


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