Do antidumping measures affect Chinese export-related firms?
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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.
KeywordsAntidumping Financial performance Government subsidies Stock returns SOEs
JEL ClassificationF130 G30 G380
Funding was provided by National Natural Science Foundation of China (Grant No. 71572046), and Humanity and Social Science Foundation, Ministry of Education of China (Grant No. 17YJA790037).
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