Huang, Y., Lin, C.,
November). “Trade networks and firm value: Evidence from the U.S.-China trade war.” Journal of International Economics, 145, 103811.
Liu, S., & Tang, H. (2023,
RESEARCH INSIGHT
Since Donald Trump’s 2016 election, the U.S. and China have been locked in a fierce trade dispute, culminating in the imposition of tariffs on Chinese imports between 2018-2019. With the possibility of Trump reclaiming the presidency in 2024, will history repeat itself? Moreover, did these tariffs have any impact anyway? Fortunately, a recent research paper dives into how this strained relationship between these economic powerhouses has affected the value of firms active in the U.S.-China trading ecosystem.
Ever since the Berlin Wall fell, globalization has fundamentally transformed the dynamics of economic activity. This transformation brought about intricate global supply chains, making nations more vulnerable to external shocks – a reality most recently made apparent by the disruptive impact of the COVID-19 pandemic. Similarly, the abrupt shifts in trade barriers triggered by the U.S.-China trade war since March 2018 have presented a unique real-world experiment for studying the effects of policy shocks on firms linked to global supply chains.
Analysing stock price movements of listed American and Chinese firms, their sales to China, exposure to Chinese imports, and the China exposure of their suppliers and buyers during key phases of the U.S.-China trade war — particularly the announcement dates of tariffs and counter-tariffs by both nations — the research shows that firms with significant Chinese sales experienced a 1.1% lower return over a three-day window than others. Furthermore, investors were quick to sell shares of
exporters dependent on domestic suppliers or buyers with significant revenue from China, as well as the stocks of importers of Chinese goods. These companies not only saw their stock prices plummet more sharply than those with minimal China exposure but were also perceived as more likely to default. A similar trend emerged among Chinese-listed firms: those with greater exposure to the America-China trade saw their value decline as investors redirected their money to other alternatives.
Interestingly, U.S. exporters with high research and Conversely, the share prices of companies reliant on underscores the critical role of product substitution and switching costs within supply chains when evaluating alternatives can be costly, the impact of such shocks on validated by the fact that positive news, such as the resumption of trade talks between the two nations, led China trade.
As the next American election looms, investors might The Apprentice) and prepare to place their bets. Mind you, even if Trump were to win, the only certainty may well be more uncertainty!
Dr. Sibo LIU Associate Professor Department of Accountancy, Economics and Finance
NEWS
HKBU School of Business Ignites
Interdisciplinary Collaborations at Research Mingle
In the ever-evolving landscape of academia, an ongoing wave of interdisciplinary collaboration is reshaping the research frontier. At the forefront of this movement are the innovative minds from the HKBU School of Business, who convened at the university-wide Research Mingle event on 24th May, 2024, to share insights and foster connections beyond the School.
Professor Yuk-Shing CHENG, Interim Dean of HKBU School of Business, underscored the significance of crossing disciplinary lines to tackle complex challenges. He cited the School’s long history of fruitful collaborations with behavioural scientists, psychologists, and data experts spanning fields like marketing, management, and economics. “The research impact actually goes far beyond our discipline. I hope our research will continue to be boundless, to go beyond the scope of our discipline – this is exactly what this event helps us to do,” he said.
True to this spirit of collaboration, Dr. Rocky CHEN, Associate Professor of the Department of Management, Marketing and Information Systems, discussed his research on the impact of humanoid service robots on consumer satisfaction and employee performance. “Whether you like it or not, they are already there,” he said, referring to the pervasive influence of artificial intelligence (AI) in diverse fields. His research unveiled the intricate interplay between operational efficiency and human touch, prompting a profound question that lingered in the minds of the audience: can a robot truly serve humanity soulfully?
Building on this interdisciplinary theme, Dr. Ting CHEN, Associate Professor and Associate Head (Research) of the Department of Accountancy, Economics and Finance, introduced her research about building an AI-powered local history database. The database’s experimental model, containing over 2,000 valuable Chinese county gazetteers — an essential resource for exploring Chinese history spanning the last millennium, encapsulating local cultures, governance, economies, and more — boasts high accuracy in Chinese history and culture, surpassing even the capabilities of the current common and large language models (LLMs).
During the dynamic Q&A session, the room was filled with animated discussions. The engaged audience, composed of researchers from various backgrounds, explored the variations, societal/commercial value, research directions of the presentations, and even how the speakers embarked on their research journeys. Time seemed to slip away as the agenda unfolded, but the attendees stayed put. After the formal programme, many attendees stayed behind to engage in more in-depth discussions over refreshments.
The Research Mingle event series is designed to empower HKBU’s dynamic research community. By facilitating vibrant idea exchanges, the initiative aims to catalyse interdisciplinary collaborations and ignite innovative breakthroughs. For upcoming events of the series, visit: https://research.hkbu.edu.hk/news-and-events/events/research-mingle
HKBU School of Business Scholar Tops Hong Kong in AIS Research Rankings
In the ever-evolving landscape of Information and Systems, where innovation and discovery are constants, Prof. Christy CHEUNG, Chair Professor of the Department of Management, Marketing, and Information Systems, has achieved significant recognitions for her outstanding contributions to the field. She ranks as the top scholar in Hong Kong and 16th worldwide in the Association for Information Systems (AIS) Research Rankings. This ranking is based on the list of global high-quality journals accumulated from 2021 to 2023.
Adding to the glory of the HKBU School of Business, Prof. CHUENG also ranks as the 12th top scholar in the Best Business and Management Scientists in China, a ranking from Research.com that includes a total of 1,845 distinguished scholars in this area of expertise.
Prof. CHEUNG’S research focuses on areas such as, how technology can make us happier, how to use technology responsibly, and how using technology affects society. Beyond research, Prof. CHEUNG holds editorial roles in major journals and the presidency of the Hong Kong Association for Information Systems (HKAIS). Her dedication to mentorship and excellence in scholarship has earned her awards like the Research Grant Council (RGC) Senior Research Fellow and the (Emerald Publishing) Emerald Literati Network Awards for Excellence.
The AIS Research Rankings service tracks publications in eight leading information systems (IS) journals. These journals, collectively known as the “AIS basket of 8”, are considered top tier in the field of business and technology.
Dr.
Danny WANG
Associate Professor Department of
Upcoming EVENTS
Research Seminars
Date
4/9/2024
9:00-10:30 Zoom
Speaker
Centre for Business Analytics and the Digital Economy
Joint with CEIBS, NTU, and NUS
Topic
Prof. Joseph TORIGIAN American University Prestige, Manipulation, and Coercion
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The Research Espresso, a bimonthly e-publication covering everything you need to know about the latest research developments at the HKBU School of Business, focuses on four key areas: Research Insights (the main research topic of the month), Research Excellence (recognition of faculty members’ research achievements), News (research-related updates), and Seminars (sharing research skills and knowledge).
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