IDEAS home Printed from https://ideas.repec.org/a/eee/finana/v36y2014icp97-105.html
   My bibliography  Save this article

The effect of antidumping and countervailing investigations on the market value of firms

Author

Listed:
  • Li, Wanli
  • Yan, Ziqiao
  • Sun, Wei

Abstract

Using a sample of listed Chinese firms between 2006 and 2012, we analyze the effect of international business strategy and government assistance on the stock market response to antidumping and countervailing investigations. We find a significantly negative abnormal return surrounding the announcements of antidumping and countervailing investigations. Furthermore, the establishment of a plant in a non-subject or “non-named”11As antidumping and countervailing investigations are country-specific, antidumping and countervailing duties are imposed only on imports from countries named in the petition. Following Ganguli (2008), we call such country a named or subject country. In contrast, the country not named in the petition is called a non-named or non-subject country. country and government assistance are positively related to the abnormal returns of antidumping and countervailing investigations. Our results suggest that government assistance is as important as strategic restructuring to offset the negative effect of trade remedy investigations.

Suggested Citation

  • Li, Wanli & Yan, Ziqiao & Sun, Wei, 2014. "The effect of antidumping and countervailing investigations on the market value of firms," International Review of Financial Analysis, Elsevier, vol. 36(C), pages 97-105.
    • Handle: RePEc:eee:finana:v:36:y:2014:i:c:p:97-105
    DOI: 10.1016/j.irfa.2014.08.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1057521914001240
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.irfa.2014.08.006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Veysel Avsar, 2013. "Antidumping, Retaliation Threats, and Export Prices," The World Bank Economic Review, World Bank, vol. 27(1), pages 133-148.
    2. Nisha Malhotra & Shavin Malhotra, 2008. "Liberalization and protection: antidumping duties in the Indian pharmaceutical industry," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 11(2), pages 115-122.
    3. Nisha Malhotra & Shavin Malhotra, 2008. "Liberalization and protection: antidumping duties in the Indian pharmaceutical industry," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 11(2), pages 115-122.
    4. Robert M. Feinberg & Kara M. Reynolds, 2008. "Friendly Fire? The Impact of US Antidumping Enforcement on US Exporters," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 144(2), pages 366-378, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Metiu, Norbert, 2021. "Anticipation effects of protectionist U.S. trade policies," Journal of International Economics, Elsevier, vol. 133(C).
    2. Feng, Xiaoli & Li, Wenjing & Peng, Yuanhuai & Tan, Youchao, 2021. "International trade friction and the cost of debt: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 67(C).
    3. Xiuping Hua & Ying Jiang & Qian Sun & Xinyi Xing, 2019. "Do antidumping measures affect Chinese export-related firms?," Review of Quantitative Finance and Accounting, Springer, vol. 52(3), pages 871-900, April.
    4. Li, Wanli & Li, Yue & Jacoby, Gady & Wu, Zhenyu, 2022. "Antidumping, firm performance, and subsequent responses," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 76(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sagnik Bagchi & Surajit Bhattacharyya & K. Narayanan, 2015. "Anti-dumping Initiations in Indian Manufacturing Industries," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 16(2), pages 278-294, September.
    2. Hylke Vandenbussche & Christian Viegelahn, 2012. "Indian Antidumping Measures against China: Evidence from Monthly Trade Data," LICOS Discussion Papers 32212, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    3. Hylke Vandenbussche & Christian Viegelahn, 2013. "The Trade Impact of Indian Antidumping Measures against China: Evidence from Monthly Data," Foreign Trade Review, , vol. 48(1), pages 1-21, February.
    4. Xufang Zhang & Changyou Sun & Jason Gordon & Ian A. Munn, 2020. "Determinants of Temporary Trade Barriers in Global Forest Products Industry," Sustainability, MDPI, vol. 12(9), pages 1-13, May.
    5. Michel DE VROEY, 2013. "What can civil society expect from academic macroeconomics?," LIDAM Discussion Papers IRES 2013022, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    6. Kuenzel, David J., 2020. "WTO tariff commitments and temporary protection: Complements or substitutes?," European Economic Review, Elsevier, vol. 121(C).
    7. Michael Moore, 2015. "Sanctuary markets and antidumping: an empirical analysis of U.S. exporters," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(2), pages 309-328, May.
    8. Laura ROVEGNO, 2013. "Endogenous trade restrictions and exporters’ pricing," LIDAM Discussion Papers IRES 2013023, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    9. Barattieri, Alessandro & Cacciatore, Matteo & Ghironi, Fabio, 2021. "Protectionism and the business cycle," Journal of International Economics, Elsevier, vol. 129(C).
    10. Chad Brown & Paola Conconi & Aksel Erbahar & Lorenzo Trimarchi, 2020. "Trade Protection Along Supply Chains," Working Papers ECARES 2020-52, ULB -- Universite Libre de Bruxelles.
    11. Mustapha Sadni Jallab & Monnet Benoît Patrick Gbakou & René Sandretto, 2008. "L'influence des facteurs macroéconomiques sur les ouvertures d'enquêtes antidumping : le cas de l'Union Européenne et des États-Unis," Revue d'économie politique, Dalloz, vol. 118(4), pages 573-600.
    12. Veysel Avsar & Gultekin Gollu & Nurgul Sevinc, 2022. "Strict trade measures, flexible financing," Southern Economic Journal, John Wiley & Sons, vol. 88(4), pages 1431-1452, April.
    13. Bastos, Paulo & Silva, Joana, 2010. "The quality of a firm's exports: Where you export to matters," Journal of International Economics, Elsevier, vol. 82(2), pages 99-111, November.
    14. Dmitri Nizovtsev & Alexandre Skiba, 2016. "Import Demand Elasticity and Exporter Response to Anti-Dumping Duties," The International Trade Journal, Taylor & Francis Journals, vol. 30(2), pages 83-114, March.
    15. Michael O. Moore, 2013. "Sanctuary Markets and Antidumping: An Empirical Analysis of U.S. Exporters," Working Papers 2013-3, The George Washington University, Institute for International Economic Policy.
    16. Laura Rovegno, 2013. "Endogenous trade restrictions and exporters’ pricing behaviour," LICOS Discussion Papers 34213, LICOS - Centre for Institutions and Economic Performance, KU Leuven.

    More about this item

    Keywords

    Antidumping; Countervailing; Stock market reaction; Government assistance; International business strategy;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finana:v:36:y:2014:i:c:p:97-105. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620166 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.