Industry competition and firm conduct: Joint determinants of risk–return relations

Abstract

In this study, we offer a novel approach, establishing how firm conduct and competitive interactions among firms jointly provide microfoundations of risk-return relations. Firms influence each other, and the way they reciprocate these influences to cause mutual adjustments is a core feature of industry dynamics. This core feature fundamentally influences risk-return relations. Based on our approach, we develop models that allow us to trace how, at the microlevel, firm conduct in conjunction

Supplier change, market competition and enterprise innovation

“…3.1.3 Moderating variable: market competition. The level of industry concentration is usually used by prior studies to measure the intensity of market competition (Ali et al, 2014;Christensen et al, 2020;. To be consistent with those prior studies, we also use the level of industry concentration (CR n) to describe the moderating variable in this paper.…”

A Falácia Do Paradoxo: Uma Análise Do Binômio Risco-Retorno No Mercado De Capitais Brasileiro

“…Diante disso, a relação negativa ex-ante entre riscoretorno seria uma associação contraintuitiva, apesar de que seja possível que ex-post ocorra por diversos motivos, destacando-se: (i) vieses cognitivos dos investidores e gestores (Kahneman & Tversky, 1979;Kliger & Tsur, 2011); (ii) falha na implementação da estratégia (Holder et al, 2016); (iii) incerteza econômica no contexto da firma (Muñoz et al, 2020); e (iv) nível de competição na indústria (Christensen et al, 2020), entre outros.…”