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Trade Liberalization and the Value of Firms: Stock Market Evidence from Singapore

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Abstract
We examine the e¤ect of the United States-Singapore Free Trade Agreement (FTA) on the value of frms listed in the Singapore Exchange using event study analysis. Despite the predictability of the FTA negotiation, we find that one event - the removal of the last obstacle to the free trade deal in January 2003 - increases the value of firms in some industries by 2-5%. These results may indicate that trade liberalization and FTAs do increase the value of firms.

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  • Rasyad A. Parinduri & Shandre M. Thangavelu, 2009. "Trade Liberalization and the Value of Firms: Stock Market Evidence from Singapore," NUBS Malaysia Campus Research Paper Series 2009-03, Nottingham University Business School Malaysia Campus.
    • Handle: RePEc:nom:nubsmc:2009-03
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    Cited by:

    1. Wing Him Yeung & Yilisha Pang & Asad Aman, 2020. "South–South Cooperation in South and East Asia: An Event Study of the China–Pakistan Economic Corridor," Global Business Review, International Management Institute, vol. 21(1), pages 54-67, February.
    2. Florence Oluremi Okeowo & Rafiu Adewale Aregbeshola, 2018. "Trade Liberalization and Performance of the Nigerian Textile Industry," Journal of Economics and Behavioral Studies, AMH International, vol. 10(2), pages 33-47.
    3. Andreas Dür & Lisa Lechner, 2023. "Winners and Losers From Trade Agreements: Stock Market Reactions to TPP and TTIP," Politics and Governance, Cogitatio Press, vol. 11(4), pages 200-211.
    4. Xiaosong Wang & Huan Wu & Le Li, 2022. "Trade policy and return on capital: An empirical analysis based on China's antidumping," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 865-892, January.
    5. Manh Toan Nguyen & Tung Lam Dang & Thi Hong Hanh Huynh, 2020. "Trade Liberalization and Income Distribution in Vietnam: Dynamic CGE Approach," Asian Economic Journal, East Asian Economic Association, vol. 34(4), pages 404-429, December.

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