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Governmental pressures and firms’ export product quality: Evidence from China

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  • Wu, Jianjun
  • Ding, Xiuying
  • Liu, Xuemei

Abstract

This study explores the effects of government's fiscal stress on firms’ export product quality. Using a tax shock in China as an exogenous experiment, we find positive effect of local governments’ fiscal stress on firms’ export product quality. Dynamic analysis shows that our findings are robust. Moreover, we find that the effects of local governments’ fiscal stress on export product quality elevation are more prominent in firms with a lower degree of resource misallocation, higher industry competition exposure, and more well-educated staff. Our study may inspire regulators who are concerned with fiscal policy and firms aiming to improve export competitiveness.

Suggested Citation

  • Wu, Jianjun & Ding, Xiuying & Liu, Xuemei, 2023. "Governmental pressures and firms’ export product quality: Evidence from China," Finance Research Letters, Elsevier, vol. 55(PA).
    • Handle: RePEc:eee:finlet:v:55:y:2023:i:pa:s1544612323002222
    DOI: 10.1016/j.frl.2023.103850
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    References listed on IDEAS

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