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Do antidumping measures affect Chinese export-related firms?

Author

Listed:
  • Xiuping Hua

    (University of Nottingham Ningbo China)

  • Ying Jiang

    (University of Nottingham Ningbo China)

  • Qian Sun

    (Fudan University)

  • Xinyi Xing

    (Fudan University)

Abstract

We examine how the US and EU antidumping (AD) cases against Chinese firms affected their stock prices and long-term financial performance during 1995–2012, and whether the affected Chinese firms received more or less government subsidies in the subsequent years. Our findings indicate that AD news, especially the final decision on imposing antidumping measures, has significantly negative effects on the stock price of relevant Chinese export-related firms. There is also some limited evidence that the AD affected firms perform worse than their matched peers in terms of profitability. However, little empirical evidence reveals an increase in government subsidies given to AD affected firms after the imposition of AD duties, but we find a decrease in subsidies for non-SOEs.

Suggested Citation

  • 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.
    • Handle: RePEc:kap:rqfnac:v:52:y:2019:i:3:d:10.1007_s11156-018-0729-2
    DOI: 10.1007/s11156-018-0729-2
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    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).

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    More about this item

    Keywords

    Antidumping; Financial performance; Government subsidies; Stock returns; SOEs;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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