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Author: Yao Deng Publisher: ISBN: Category : Languages : en Pages : 62
Book Description
This paper studies the impact of product market competition on the well-documented positive relation between firms' current profitability and future stock returns. I find that this relation is robust only in competitive industries. A long-short portfolio sorted on profitability earns an average monthly return of 1.1% in competitive industries and only 0.14% in concentrated industries. Firms' differential exposure to investment-specific technology shocks explains this gap. To understand this result, I build a production-based model with imperfect competition. Market power reduces a firm's investment response to these shocks and thus lowers risk exposure. Empirical tests confirm the model's predictions.
Author: Yao Deng Publisher: ISBN: Category : Languages : en Pages : 62
Book Description
This paper studies the impact of product market competition on the well-documented positive relation between firms' current profitability and future stock returns. I find that this relation is robust only in competitive industries. A long-short portfolio sorted on profitability earns an average monthly return of 1.1% in competitive industries and only 0.14% in concentrated industries. Firms' differential exposure to investment-specific technology shocks explains this gap. To understand this result, I build a production-based model with imperfect competition. Market power reduces a firm's investment response to these shocks and thus lowers risk exposure. Empirical tests confirm the model's predictions.
Author: Ying Guo Publisher: ISBN: Category : Languages : en Pages : 45
Book Description
The economic literature shows that production market competition could have nonlinear effects on corporate behaviors, such as management effort and innovative activities. We extend the literature by focusing on the influence of product market competition on earnings quality. We propose and document an inverted U-shape relation between earnings quality and product market competition. Earnings quality increases with competition in the lower range of competition and declines with it when competition is intense. The results are robust to assorted measures of earnings quality and competition, and treatment of endogeneity.
Author: Michael E. Porter Publisher: Simon and Schuster ISBN: 1416595848 Category : Business & Economics Languages : en Pages : 592
Book Description
Now beyond its eleventh printing and translated into twelve languages, Michael Porter’s The Competitive Advantage of Nations has changed completely our conception of how prosperity is created and sustained in the modern global economy. Porter’s groundbreaking study of international competitiveness has shaped national policy in countries around the world. It has also transformed thinking and action in states, cities, companies, and even entire regions such as Central America. Based on research in ten leading trading nations, The Competitive Advantage of Nations offers the first theory of competitiveness based on the causes of the productivity with which companies compete. Porter shows how traditional comparative advantages such as natural resources and pools of labor have been superseded as sources of prosperity, and how broad macroeconomic accounts of competitiveness are insufficient. The book introduces Porter’s “diamond,” a whole new way to understand the competitive position of a nation (or other locations) in global competition that is now an integral part of international business thinking. Porter's concept of “clusters,” or groups of interconnected firms, suppliers, related industries, and institutions that arise in particular locations, has become a new way for companies and governments to think about economies, assess the competitive advantage of locations, and set public policy. Even before publication of the book, Porter’s theory had guided national reassessments in New Zealand and elsewhere. His ideas and personal involvement have shaped strategy in countries as diverse as the Netherlands, Portugal, Taiwan, Costa Rica, and India, and regions such as Massachusetts, California, and the Basque country. Hundreds of cluster initiatives have flourished throughout the world. In an era of intensifying global competition, this pathbreaking book on the new wealth of nations has become the standard by which all future work must be measured.
Author: Yao Deng
Author: Yao Deng
Author: Ying Guo
Author: 
Author: Chung-Shin Liu
Author: Ho-yin Paul Man
Author: 
Author: Maria Cecilia Bustamante
Author: Juan Santalo Mediavilla
Author: Maria Cecilia Bustamante
Author: Michael E. Porter