The impact of product market competition on workplace safety

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.

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Publication Details

Journal
Journal of Corporate Finance
Published
2025-04-01
DOI
https://doi.org/10.1016/j.jcorpfin.2025.102778
Citations
4
Primary Topic
Occupational Health and Safety Research
Type
article
Field-Weighted Citation Impact
6.16
Controls
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article

The impact of product market competition on workplace safety

Emdad Islam, Lubna Rahman, Blake Loriot
4 citations
Journal of Corporate Finance
Occupational Health and Safety Research
6.16
article

The impact of product market competition on workplace safety

Emdad Islam, Lubna Rahman, Blake Loriot
article en
4 citations

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.

Journal of Corporate FinanceVol. 93
Monash University (AU)
Decent work and economic growth
Openalex Percentile: Top 4%
Occupational Health and Safety Research
6.16
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