ABSTRACT
The availability of data for Taiwan and Korea allows for a greater understanding of the effects of US trade restrictions than has been possible in the past. In general, the trade related firms’ stock prices were less sensitive to the trade restriction and trade conflict news than to the trade deficit news in all three countries. For US firms, the “unfair trade practice” petitions and the subsequent decisions on these cases had no significant impact on the petitioners’ stock prices from two days before to two days after. For Korean and Taiwanese export-oriented firms, although some trade conflict news events had significant impacts, most events did not. For all three countries, the trade deficit news effect was more significant in the second subsample period than in the first. This is consistent with the assertion that the market participants paid more attention to the trade deficit news in the second subsample period than in the first.
