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

22 Pages Posted: 17 Apr 2009  

R. A. Parinduri

Nottingham University Business School, Malaysia Campus

Shandre M. Thangavelu

National University of Singapore (NUS) - Department of Economics

Date Written: April 16, 2009

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.

Keywords: free trade agreements, event study analysis, Singapore

JEL Classification: F19

Suggested Citation

Parinduri, R. A. and Thangavelu, Shandre M., Trade Liberalization and the Value of Firms: Stock Market Evidence from Singapore (April 16, 2009). Nottingham Univ. Business School Malaysia Campus Research Paper No. 2009-03. Available at SSRN: https://ssrn.com/abstract=1386282 or http://dx.doi.org/10.2139/ssrn.1386282

Rasyad A. Parinduri (Contact Author)

Nottingham University Business School, Malaysia Campus ( email )

Wisma MISC
No. 2 Jalan Conlay
Kuala Lumpur, Selangor 43500
Malaysia

Shandre Mugan Thangavelu

National University of Singapore (NUS) - Department of Economics ( email )

1 Arts Link, AS2 #06-02
Singapore 117570, Singapore 119077
Singapore

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