Research on the Peer Effect of Firms’ Export Behavior

Abstract

Because of the information asymmetry and risk uncertainty, export firms will learn to adjust export decisions from their peers. Based on the micro-matching data of China's customs export products and listed firms, this paper examines the peer effect of firms export activities by introducing equity shock as an exogenous variable. It is found that first, the values, scopes and number of destinations of exporters' products are positively influenced by their peer firms; second, exporters with lower product quality, growth capability and export intensity will follow those exporters with better export performances to change their behaviors. These asymmetric results prove that peer effect of firms' export behavior is in accordance with the law of logical imitation; third, CEOs with different demographic characteristics have great impact on the magnitude of export peer effect, showing that risk preferences and cognitive patterns of CEOs are significant for firms' export behavior.