Author(s)

Jingshui Sun, Guangli Liu

Corresponding Author

Jingshui Sun

ABSTRACT

This paper defines the connotation of product quality upgrading, constructs the evaluation index of product quality upgrading, and reveals the influence mechanism of product quality upgrading on enterprise performance. Based on the perspective of enterprise heterogeneity, this paper makes an empirical analysis of the impact of product quality upgrading on enterprise performance by using the micro data after matching between the database of Chinese industrial enterprises and the customs database from 2000-2013. The results show that: (1) Product quality upgrading has a positive impact on enterprise performance, and product quality upgrading at different levels has a significant difference in the impact on enterprise performance. Among them, low-level product quality upgrading has a greater impact on enterprise performance, followed by high-level product quality upgrading, and middle-level product quality upgrading has less impact. (2) Enterprise heterogeneity have significant impacts on enterprise performance. Among them, enterprise productivity, innovation ability, government subsidies, export scale and industry competition all have significant positive impact on enterprise performance. However, debt ratio, financing cost, capital intensity, institutional enterprise and capital mobility all have significant negative impact on enterprise performance. The above research results provide important policy implications.

KEYWORDS

Product quality upgrading, Enterprise performance, Enterprise heterogeneity