Globalization, product specialization, and firm value

Ruxue Bai, Ying Li, Zhengwen Liu and Libo Yin

Finance Research Letters, 2025, vol. 80, issue C

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.

Keywords: Quotas; Multi-product firms; Stock market; Exports; Product specialization (search for similar items in EconPapers)
JEL-codes: F13 G11 G12 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:80:y:2025:i:c:s1544612325004647

DOI: 10.1016/j.frl.2025.107201

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