ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Quality Signals and Export Performance

The relationship between quality, reputation and firm performance is a new research area, where aspects like productivity, efficiency, quality and competitiveness have come to the forefront. Our study, using panel data of 572 Indian firms over the period 1989 to 1997, tries to capture various signals of firm quality and reputation to check whether quality matters in the export market under perceived quality uncertainty. Panel logit model is fitted on the data to confirm whether these quality and reputation signals have a significant influence in determining the probability of a firm to export in the next year. Our econometric results support the existence of a linkage between the product market and financial market, as a firm's financial decisions may drive product market outcomes.

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