The impact of Sino–US trade war on price discovery of soybean: A double‐edged sword?

Bandyopadhyay, Arunava; Rajib, Prabina

doi:10.1002/fut.22415

Cited by 8 publications

(3 citation statements)

References 90 publications

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“…Additionally, event-specific studies have also contributed to understanding this field. For instance, Bandyopadhyay and Rajib (2023) used a new information share model to assess how the trade war influenced market sentiment, thereby affecting prices of soybean futures prices in the United States and China. These studies have not only enhanced our understanding of the mechanisms underlying market sentiment, but also provided significant insights into the stability and forecasting of financial markets.…”

Section: The Relationship Between Market Sentiment and Price Dynamicsmentioning

confidence: 99%

“…The two basic models of price discovery are IS proposed by Hasbrouck (1995) and Component Share (CS) based on the permanent and temporary decomposition methods of Gonzalo and Granger (1995). Both methods are based on a common implied effective price, which is included in the observed price of a security and can be estimated using a VECM framework (Bandyopadhyay & Rajib, 2023).…”

Section: Price Discovery Share Modelmentioning

confidence: 99%

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Market sentiment and price dynamics in weak markets: A comprehensive empirical analysis of the soybean meal option market

Yan,

Liang,

Zhao

2024

Journal of Futures Markets

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This study addresses key issues of market efficiency in weak global futures markets, focusing on the intricate relationship between market sentiment and options pricing. Employing rolling variance ratio tests and information‐sharing models for market dynamics analysis, and supplemented with Granger causality tests and impulse response findings, it reveals a significant, unidirectional impact of market sentiment on options pricing, especially during periods of heightened sentiment. These insights underscore the importance of considering time dynamics in market behavior analysis, offering a novel perspective on futures and options market understanding.

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Section: The Relationship Between Market Sentiment and Price Dynamicsmentioning

confidence: 99%

Section: Price Discovery Share Modelmentioning

confidence: 99%

Market sentiment and price dynamics in weak markets: A comprehensive empirical analysis of the soybean meal option market

Yan,

Liang,

Zhao

2024

Journal of Futures Markets

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“…Literature review [9] studied the impact of US-China trade war on the US soybean futures market. [10] highlighted the influence of China on the Asian region is a huge challenge to USA.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Mean and volatility spillover in Asian economies: Evidence from trade war

Shafique,

Bhutta

2023

PLoS ONE

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This study aims to assess the mean and volatility spillover due to trade war between US and China on the Asian markets using GARCH, evidencing that portfolio opportunity exists for the investors in these markets. These markets may offer diversification benefits to investors who fear the negative ramifications of stock markets of the economies in US and China. The study creates a composite variable to test the impact of trade war. The composition of the variable is based on Bilateral Tariffs, Trade policy and Economic policy uncertainty of US only. It means the study covers the US side only for creating a trade war variable. The findings of the study reveal no mean or volatility spillover exists. The study has implications for investors and policymakers.

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A timely helping hand: China‐U.S. Trade War, government subsidy, and firm innovation

Chen,

Yang,

et al. 2024

Manage Decis Econ

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This paper investigates the impact and mechanism of the China‐U.S. trade war on firm innovation in China exploiting the trade war as a quasi‐natural experiment using firm‐level data from 2015 to 2020. We apply textual analysis to annual reports of listed firms to identify treatment and control groups. Our DID estimates show that while the trade war is a negative shock, it has increased the number of total patent applications, invention patent applications, and non‐invention patent applications by 6.0%, 3.7%, and 4.1%, respectively. We also observe that government subsidies could help firms resist adverse shocks on time with more innovation outcomes. Furthermore, we find the pertinence of government subsidy. The government tended to grant subsidies to firms that have trade connections with the U.S. and firms would use subsidies for R&D to increase innovation. Overall, we find that the trade war prompts the government to increase subsidies for firms, thereby boosting innovation.

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The impact of Sino–US trade war on price discovery of soybean: A double‐edged sword?

Cited by 8 publications

References 90 publications

Market sentiment and price dynamics in weak markets: A comprehensive empirical analysis of the soybean meal option market

Market sentiment and price dynamics in weak markets: A comprehensive empirical analysis of the soybean meal option market

Mean and volatility spillover in Asian economies: Evidence from trade war

A timely helping hand: China‐U.S. Trade War, government subsidy, and firm innovation

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