Exposure to superstar firms and financial distress
Stephanie F. Cheng,
Dushyantkumar Vyas,
Regina Wittenberg-Moerman
et al.
Abstract:A few highly successful firms (“superstar firms”) have captured large market shares and earned massive profits in recent decades. We examine whether superstar firms are associated with a greater likelihood of financial distress for firms exposed to them in product markets. Building on recent research, we identify superstars as firms with the highest markups in the industry and whose industry markup share increases over time. We then measure, with product similarity scores, a firm’s overall product market expos… Show more
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