About the Event
What impact has the recent US-China trade war had on the market value of Chinese listed companies? In this seminar, Jane Lu, Chair Professor of the Department of Management at the City University of Hong Kong, discussed the upcoming Journal of Management paper that examines this question with a multidimensional view of the 'event space' and its impact on business in times of crisis.
Abstract
Venue and Company Value – Chinese Listed Companies in the US-China Trade War
Although previous studies in crisis management have typically taken a geography-focused approach to study how physical proximity increases firms' exposure to a crisis, this study draws on event systems theory and suggests that regardless of firms' geographic locations, a an event can have multiple spatial directions and proximity to companies in the event space. To further unpack the effects of venue, we develop an integrated framework that examines how venue interacts with entity characteristics—which appear to help firms address the external challenges that affect their market value . Using the 2018 US–China trade war shock on listed firms in China, we find that the trade war significantly reduced the market value of firms that have spatial proximity to the product market (i.e., firms in target industries ) and in the geographic market (ie, companies that export to the United States) in an event space. This negative effect is also transmitted to peer organizations with business activities related to target industries or the United States. Furthermore, there are different moderating effects of entity characteristics, such as corporate political connections and corporate social responsibility, on the different spatial event directions, indicating the distinct natures of the spatial event directions. This study introduces a new, multidimensional view of event space and uses it to develop an event space model for geopolitical events, and in doing so, we complement existing work on the role of crises in shaping corporate strategy and performance.
Citation: Lu, JW, Zhou, X. (2023). Venue and Company Value: Chinese Listed Companies in the US-China Trade War. Journal of Management. 1-37.
About Jane Lou
Jane Lu is Chair Professor in the Department of Management, City University of Hong Kong. Her work has appeared in Academy of Management Journal, Administrative Science Quarterly, Strategic Management Journal, Journal of Management, and Journal of International Business Studies, among other leading magazines. She served as its Editor-in-Chief Asia Pacific Journal of Management (2016-2018). He is currently its Senior Editor Journal of World Business and its Consulting Editor Journal of International Business Studies. She received her MBA from China Europe International Business School (CEIBS) and her Ph.D. from the Ivey School of Business, Western University.
Jane began her academic career at the National University of Singapore where she was promoted to Associate Professor with tenure. She served as James Riady Chair Professor in Asian Business and Economics and Director of the Center for Asian Business and Economics at the University of Melbourne (2013-2017) and Parkland Chair Professor of Strategy and Director of the Center for Emerging Market Studies at CEIBS (2017-2019), before join CityU. Jane's research focuses on the intersection between organizational theory and strategy, focusing on international and non-commercial strategies. Her previous research explores broad-level issues that underlie a firm's international strategy, as well as specific strategic questions such as how to make a successful foreign entry into a country or how to manage successfully in a foreign country. Her recent research continues this line of research but focuses on emerging market companies and their off-market strategies.
About the Nardone Family Seminar Series
Made possible by a gift from David R. Nardone, this seminar series brings scholars and practitioners to Northeastern University to share insights about emerging markets.
