Stock market responses to U.S. and Japanese bilateral merchandise balance of trade announcements: 1976–1987

Abstract

This study presents an analysis of the impact of U.S. merchandise balance of payment announcements with Japan on U.S. stock market participants over the period from December 1976 to December 1987. The results of the study suggest that these announcements affect the overall stock market only between June 1984 and December 1987, a sample of U.S. manufacturing firms over the entire time interval, and a sample of composed of Japanese firms listed on U.S. stock exchanges only between December 1976 and May 1984.