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doi:10.22028/D291-42164 | Title: | Market power and systematic risk |
| Author(s): | Hollstein, Fabian Prokopczuk, Marcel Würsig, Christoph Matthias |
| Language: | English |
| Title: | Financial Management |
| Volume: | 53 (2024) |
| Issue: | 2 |
| Pages: | 233-266 |
| Publisher/Platform: | Wiley |
| Year of Publication: | 2023 |
| Free key words: | discount-rate beta market beta market power mergers and acquisitions product market competition systematic risk |
| DDC notations: | 330 Economics |
| Publikation type: | Journal Article |
| Abstract: | We examine the impact of product market competition on firms’ systematic risk. Using a measure of total product market similarity, we document a strong negative relationship between market power and market betas. The effect more than triples in the most recent period of low competition. Anticompetitive mergers result in a significant reduction in market betas. Firms facing less competition seem to be partially insulated from systematic discount-rate shocks. Lower equity costs therefore imply that market power is partly self-perpetuating. |
| DOI of the first publication: | 10.1111/fima.12438 |
| URL of the first publication: | https://onlinelibrary.wiley.com/doi/10.1111/fima.12438 |
| Link to this record: | urn:nbn:de:bsz:291--ds-421640 hdl:20.500.11880/37842 http://dx.doi.org/10.22028/D291-42164 |
| ISSN: | 1755-053X 0046-3892 |
| Date of registration: | 11-Jun-2024 |
| Faculty: | HW - Fakultät für Empirische Humanwissenschaften und Wirtschaftswissenschaft |
| Department: | HW - Wirtschaftswissenschaft |
| Professorship: | HW - Prof. Dr. Fabian Hollstein |
| Collections: | SciDok - Der Wissenschaftsserver der Universität des Saarlandes |
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| File | Description | Size | Format | |
|---|---|---|---|---|
| Financial Management - 2023 - Hollstein - Market power and systematic risk.pdf | 454 kB | Adobe PDF | View/Open |
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