Peer effects of corporate product quality information disclosure: Learning and competition

Jiaxin Wang, Guilin Wu, Xiang Huang, Di Sun and Zilong Song

Journal of International Financial Markets, Institutions and Money, 2023, vol. 88, issue C

Abstract: This paper examines peer effects of product quality information disclosure and its motivations using a sample of Chinese listed companies. We find that the peers’ product quality information disclosure is positively associated with the firm’s product quality information disclosure. We further show that there are two motivations for this peer effect: learning and competition. In cross-sectional tests, we find the peer effects are more pronounced in samples with high degree of marketization and product quality concerns. Lastly, we show that the peer effects can improve the firm's performance in both the capital and product markets. Our work advances the related literature on peer effects from the perspective of product quality information disclosure.

Keywords: Product quality information disclosure; Peer effects; Learning; Competition (search for similar items in EconPapers)
JEL-codes: G14 G34 L15 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:intfin:v:88:y:2023:i:c:s1042443123000926

DOI: 10.1016/j.intfin.2023.101824

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