Business strategy and financial consequences: The case of antidumping filings

Does predatory pricing in an industry affect firm values? In this paper, we show that firms filing for antidumping benefit from this decision after controlling for endogeneity of filing decision. Firms with shrinking assets in the past are more likely to file an antidumping petition and market price of firms with more employees and more assets increase more compared to ones with fewer employees and less assets when they file for antidumping. Finally, we find that the correlation between market value changes in supplier industries and the filing industry is economically larger than that of customer industries, suggesting that supplier industries would suffer more if a domestic firm faces foreign competition. (C) 2012 Elsevier B. V. All rights reserved.