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Globalization, product specialization, and firm value

Author

Listed:
  • Bai, Ruxue
  • Li, Ying
  • Liu, Zhengwen
  • Yin, Libo

Abstract

This paper investigates the stock market performances of multi-product firms in response to positive demand shocks. With export quota removal due to the Multifiber Arrangement (MFA) phase-out, affected Chinese listed firms experienced positive stock returns. An important mechanism behind this is product specialization within firms. We utilize detailed firm-product-destination-level export data to show that multi-product firms narrow their product lines and focus on their most-productive varieties after quota removal.

Suggested Citation

  • Bai, Ruxue & Li, Ying & Liu, Zhengwen & Yin, Libo, 2025. "Globalization, product specialization, and firm value," Finance Research Letters, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:finlet:v:80:y:2025:i:c:s1544612325004647
    DOI: 10.1016/j.frl.2025.107201
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    References listed on IDEAS

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    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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