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Business strategy and financial consequences: The case of antidumping filings

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  • Gurun, Ayfer

Abstract

Does predatory pricing in an industry affect firm values? In this paper, we show that firms filing for antidumping benefit from this decision after controlling for endogeneity of filing decision. Firms with shrinking assets in the past are more likely to file an antidumping petition and market price of firms with more employees and more assets increase more compared to ones with fewer employees and less assets when they file for antidumping. Finally, we find that the correlation between market value changes in supplier industries and the filing industry is economically larger than that of customer industries, suggesting that supplier industries would suffer more if a domestic firm faces foreign competition.

Suggested Citation

  • Gurun, Ayfer, 2013. "Business strategy and financial consequences: The case of antidumping filings," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 24(C), pages 127-138.
    • Handle: RePEc:eee:intfin:v:24:y:2013:i:c:p:127-138
    DOI: 10.1016/j.intfin.2012.11.006
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    Cited by:

    1. 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.
    2. 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).

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    More about this item

    Keywords

    Market reaction to international trade announcements; Antidumping; Lobbying;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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