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Dissipative Competition: Evidence from a Quasi-Natural Experiment

We document that contrary to the conventional view, the costs of domestic firms in terms of selling, general and administrative expenses and cost of goods sold increase significantly following exogenous shocks that increase competition, namely material import tariff cuts affecting US manufacturing industries over the period 1974?2005. Incompatible with an agency explanation, the cost increase is more pronounced among firms with higher CEO/insider/board ownership. We further find that the cost increase is more evident among firms with smaller market share and among focused firms. Generally, our results are consistent with the notion of ?dissipative competition? discussed in the seminal papers by Tullock..Printed Journal

Ketersediaan

Call NumberLocationAvailable
IROF1502PSB lt.dasar - Pascasarjana1
Penerbit Wiley.,
Edisi -
Subjek firms
increase
dissipative competition
ISBN/ISSN 1369412X
Klasifikasi -
Deskripsi Fisik -
Info Detail Spesifik -
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