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Creating barriers for foreign competitors: a study of the impact of anti‐dumping actions on the performance of U.S. firms
Author(s) -
Marsh Sarah J.
Publication year - 1998
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/(sici)1097-0266(199801)19:1<25::aid-smj926>3.0.co;2-c
Subject(s) - competitor analysis , dumping , value (mathematics) , statute , business , commission , international trade , economics , international economics , marketing , law , finance , political science , machine learning , computer science
This study investigates whether anti‐dumping statutes are effective at improving the performance of U.S. firms. As international trade grows and competitors increasingly cross national borders to enter new markets, U.S. trade law becomes a potentially important tool for managers as they consider how to create barriers for foreign competitors. The results of this study suggest that the anti‐dumping laws significantly increase returns of U.S. firms that pursue anti‐dumping protection. The average petitioner between 1980 and 1992 received a $46 million increase in market value as a result of filing an anti‐dumping petition. However, no significant change in market value was associated with preliminary or final determinations of the International Trade Commission, except when petitions received a negative determination at the final stage of the process. A negative determination at the final stage of the process resulted in a loss of market value. © 1998 John Wiley & Sons, Ltd.