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dc.contributor.authorPontuch, Peter
dc.date.accessioned2011-05-12T14:30:37Z
dc.date.available2011-05-12T14:30:37Z
dc.date.issued2011
dc.identifier.urihttps://basepub.dauphine.fr/handle/123456789/6271
dc.language.isoenen
dc.subjectprofitability mean-reversionen
dc.subjectfirm profitabilityen
dc.subjectbusiness cycleen
dc.subjectfinancing constraintsen
dc.subjectproduct market competitionen
dc.subject.ddc658.1en
dc.subject.classificationjelL11en
dc.subject.classificationjelG32en
dc.titleProduct Market Concentration, Financing Constraints, and Firms' Business Cycle Sensitivityen
dc.typeCommunication / Conférence
dc.description.abstractenWe study the effects of product market concentration and financing constraints, separately and jointly, on the business cycle sensitivity of firms' operations. We confirm that the sensitivity is higher for firms in industries with both a low concentration and a relatively even distribution of market power (truly competitive industries) and lower for firms in concentrated industries. Next, we find that financially constrained firms are in general more sensitive to the cycle, but they also have a less favorable exposure to leading downturn indicators (CP spread or bond spread). This suggests that constrained firms are the first to be affected by turnarounds in the business cycle, consistent with a financial accelerator effect. However we show that this effect of financing constraints is mostly present in truly competitive industries, and less so in concentrated industries. Lastly we find that financing constraints have a significant impact on competition mechanisms, proxied by the cross-sectional mean-reversion of company profitability.en
dc.identifier.citationpages33en
dc.description.sponsorshipprivateouien
dc.subject.ddclabelOrganisation et finances d'entrepriseen
dc.relation.conftitle2011 FMA Annual Meeting
dc.relation.confdate2011-10
dc.relation.confcityDenver
dc.relation.confcountryEtats-Unis


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