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Valuation effects of the US–China trade war: The effects of foreign managers and foreign exposure

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  • Haoyuan Ding
  • Bo Pu
  • Tong Qi
  • Kai Wang

Abstract

With an event study approach, this study examines the valuation effects of the US–China trade war. It is found that Chinese listed firms with American managers record lower announcement returns than their counterparts. This effect is heterogenous for firms with different foreign exposures. Specifically, the negative effect is more pronounced for firms exporting to the US market, while other foreign exposures, such as overseas direct investments and foreign shareholders mitigate the negative effects of American managers. These findings provide micro‐level evaluation of trade policy with the combination of stock market and corporate governance.

Suggested Citation

  • Haoyuan Ding & Bo Pu & Tong Qi & Kai Wang, 2022. "Valuation effects of the US–China trade war: The effects of foreign managers and foreign exposure," Journal of Economic Surveys, Wiley Blackwell, vol. 36(3), pages 662-683, July.
    • Handle: RePEc:bla:jecsur:v:36:y:2022:i:3:p:662-683
    DOI: 10.1111/joes.12438
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