This paper provides evidence that a firm's stock price movements affect its customer demand. I develop a model in which customers learn about a firm's product quality partially from its stock price. This learning induces feedback from the price to customer demand. Furthermore, the firm manager...

Countries have historically welcomed foreign capital and have implemented policies to facilitate and encourage its inflow. However, the recent surge of FDI from economies characterised by large state interventionism has raised concerns for national security and economic stability, leading to...