Product Market Competitiveness and Return Dynamics
Title | Product Market Competitiveness and Return Dynamics PDF eBook |
Author | Xiang Liu |
Publisher | |
Pages | 150 |
Release | 2019 |
Genre | |
ISBN |
This dissertation examines whether stock performance of rivals is informative about a firm's future stock return, and how the strength of predictability relates to product market competitiveness. My analysis reveals a short-lived yet pronounced stock return predictability between one firm and its rivals: a hedged portfolio that is long in the quintile of stocks with the highest prior rival returns and short in the quintile of stocks with the lowest prior rival returns yields an average monthly return of 1.79%. This pattern is stronger among small firms and firms with high arbitrage costs, consistent with the notion that gradual information flow induces predictability. Furthermore, it varies systematically with the degree of product market competitiveness that a firm faces: competitive and dynamic industries where rivals produce similar products are associated with stronger rival momentum. My findings contribute to the understanding of asset return dynamics and have important implications in the current environment of increasing industry concentration in the U.S. economy
Real Options, Product Market Competition and Asset Returns
Title | Real Options, Product Market Competition and Asset Returns PDF eBook |
Author | Felipe Aguerrevere |
Publisher | |
Pages | |
Release | 2013 |
Genre | |
ISBN |
We study how competition in the product market affects the link between firms' real investment decisions and their asset return dynamics. In our model, assets in place and growth options have different sensitivities to market wide uncertainty. The strategic behavior of market participants influences the relative importance of these components of firm value. We show that the relationship between the degree of competition and assets' expected rates of return varies with product market demand. When demand is low, firms in more competitive industries earn higher returns, whereas when demand is high firms in more concentrated industries earn higher returns.
The Dynamics of Product Quality and International Competitiveness
Title | The Dynamics of Product Quality and International Competitiveness PDF eBook |
Author | Ashoka Mody |
Publisher | International Monetary Fund |
Pages | 40 |
Release | 2007-04 |
Genre | Business & Economics |
ISBN |
Despite the appreciation of the exchange rate, the eight Central and Eastern European countries (the CEE-8) that entered the European Union in May 2004 have achieved a decade of impressive export growth, expanding significantly their shares of world markets. Does this mean that the real exchange rate is irrelevant? If not, what other factors compensated for the appreciation to explain the apparently strong competitiveness of these economies? And will these favorable factors continue to power export growth? This paper places in international context the achievements of the CEE-8 and helps more broadly to identify the determinants of international competitiveness. Building from data at the six-digit level of disaggregation, it shows that the CEE-8 made an impressive shift in product quality and in the technological intensity of exports, and that these shifts associated with the structural transformation were also associated with increased market share. The analysis strongly suggests that, when trading in international markets, countries benefit from higher product quality. However, while the structural transformation achieved was valuable in raising market shares, the easy gains from this process may be over.
Product Market Competition and Industry Returns
Title | Product Market Competition and Industry Returns PDF eBook |
Author | Maria Cecilia Bustamante |
Publisher | |
Pages | 65 |
Release | 2014 |
Genre | |
ISBN |
Dynamic Competitive Strategy & Product Life Cycles
Title | Dynamic Competitive Strategy & Product Life Cycles PDF eBook |
Author | Chester R. Wasson |
Publisher | |
Pages | 394 |
Release | 1978 |
Genre | Business & Economics |
ISBN |
The Modern Corporation and Private Property
Title | The Modern Corporation and Private Property PDF eBook |
Author | Adolf Augustus Berle |
Publisher | |
Pages | 396 |
Release | 1937 |
Genre | Corporation law |
ISBN |
The impact of product market competition on expected returns
Title | The impact of product market competition on expected returns PDF eBook |
Author | Chung-Shin Liu |
Publisher | |
Pages | 0 |
Release | 2011 |
Genre | |
ISBN |