The Effects of an Anti-Dumping Policy on Stock Prices of the Solar Companies

Bi-Huei Tsai () and Pei-Wei Kuo ()
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Bi-Huei Tsai: National Chiao Tung University
Pei-Wei Kuo: National Chiao Tung University

No 7808968, Proceedings of International Academic Conferences from International Institute of Social and Economic Sciences

Abstract: This study focuses on the reactions of abnormal returns on the Taiwanese solar stocks from eight anti-dumping events to examine the effect of anti-dumping tax on the Taiwanese solar companies. We collects the Taiwanese market reactions to U.S. announced anti-dumping tax on Taiwan, and the Chinese market reactions to U.S. announced anti-dumping tax on China. The purposes of this study are to explore whether abnormal returns are negative during the announcement of anti-dumping tax investigation. Furthermore, we test how abnormal returns change when the verdict of anti-dumping tax is favorable or unfavorable. Finally, we test whether Taiwanese solar stocks abnormal returns are positive during American announcement of anti-dumping tax on China. We find that the abnormal returns are negative during the announcement of anti-dumping tax investigation. The abnormal returns are positive if the verdict of anti-dumping tax is favorable. On the other hand, the abnormal returns are negative if the verdict of anti-dumping tax is unfavorable. Because China and Taiwan ranks top one and two in solar investment respectively, we find positive abnormal returns of Taiwanese companies during American?s announcement of anti-dumping tax on China.

Keywords: Solar; Anti-dumping; Abnormal Returns; Tax; Verdict (search for similar items in EconPapers)
JEL-codes: G00 H21 Q20 (search for similar items in EconPapers)
Pages: 1 page
Date: 2018-07
New Economics Papers: this item is included in nep-cna and nep-ene
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Published in Proceedings of the Proceedings of the 38th International Academic Conference, Prague, Jul 2018, pages 187-187

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