| Popis: |
We investigate shareholder wealth effects of congressional passage of the North American Free Trade Agreement in November 1993. Shareholders of U.S. firms experienced insignificant abnormal returns on average when Congress voted to approve the measure, while Mexican firms received positive returns. Returns were significantly negative on average to U.S. firms in sectors that received special attention in the agreement. Shareholders in the agricultural, textile, and apparel sectors gained, while shareholders in the communications, motor vehicles and equipment, and financial services sectors were harmed by the agreement. Regression analysis shows that returns are proportional to Tobin's q, labor intensity, and firm size. Results suggest that value-added growth firms and labor intensive firms gain from trade liberalization with Canada and Mexico. |
Full Text from ScienceDirect