Trade War and the Implication-Perspective from Christian Worldview

Kuei-Chih Lee

《Journal of Christian Higher Education》 3期 (2020/12) Pp. 26-32

https://doi.org/10.6942/JCHE.202012_(3).0003

摘要

This study applies the event study with market model method to test the trade war impact effect on the stock prices of steel industry in the Taiwan market. The results reveal that the abnormal returns are statistically significant which indicates the existence of a tariff announcement effect. Also, the cumulative abnormal returns reverse from negative to positive and are statistically significant, supporting the overreaction hypothesis. These empirical results reveal that the stock market has a significant negative effect, and overreaction phenomena implies that most people are panicking in this uncertain environment. Most importantly, Christians should maintain a right attitude towards the unpredictability and uncertainty of the trade war so can face this kind of unstable situation. Also, Christians should distinguish issues based on the prophecies in the Bible. Additionally, we must remain calm and stable, and not panic, because the Lord Jesus said that He gave us peace. At the end of this article, the author shares how Christians should reflect on the panic caused by this uncertain environment.

關鍵字

trade war ； announcement effect ； overreaction ； Christian worldview

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