The impact of product market competition on workplace safety

Emdad Islam, Blake Loriot and Lubna Rahman

Journal of Corporate Finance, 2025, vol. 93, issue C

Abstract: We investigate the impact of product market competition (PMC) on workplace health and safety violations. Our findings reveal that firms facing intense PMC have higher incidences of workplace safety standards violations and pay higher penalties for such offenses. By leveraging reductions in import tariffs as quasi-exogenous shocks, we demonstrate that competitive pressures significantly worsen these violations. The strategic orientations of firms, whether towards cost-cutting or product differentiation, markedly shape these outcomes. Furthermore, pressure from analysts amplifies the negative impact, while labor unionization helps mitigate these detrimental effects, highlighting the nuanced interplay between governance and market forces.

Keywords: Product market competition; Workplace safety; Cost-cutting; Product differentiation (search for similar items in EconPapers)
JEL-codes: D40 G30 J28 K31 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:93:y:2025:i:c:s092911992500046x

DOI: 10.1016/j.jcorpfin.2025.102778

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