TY - JOUR
T1 - Inter-firm rivalry and firm growth
T2 - Is there any evidence of direct competition between firms?
AU - Coad, Alexander Jean-Luc
AU - Teruel, M.
PY - 2013/4/1
Y1 - 2013/4/1
N2 - Inter-firm competition has received much attention in the theoretical literature, but recent empirical work suggests that the growth rates of rival firms are uncorrelated. We begin by investigating the correlations of the growth rates of competing firms (i.e. the largest and second-largest firms in the same industry) and observe that, surprisingly, the growth of these firms can be taken as uncorrelated. Nevertheless, peer-effect regressions, that take into account the simultaneous interdependence of growth rates of rival firms, are able to identify significant negative effects of rivals' growth on a firm's growth
AB - Inter-firm competition has received much attention in the theoretical literature, but recent empirical work suggests that the growth rates of rival firms are uncorrelated. We begin by investigating the correlations of the growth rates of competing firms (i.e. the largest and second-largest firms in the same industry) and observe that, surprisingly, the growth of these firms can be taken as uncorrelated. Nevertheless, peer-effect regressions, that take into account the simultaneous interdependence of growth rates of rival firms, are able to identify significant negative effects of rivals' growth on a firm's growth
UR - http://www.scopus.com/inward/record.url?scp=84875589695&partnerID=8YFLogxK
U2 - 10.1093/icc/dts018
DO - 10.1093/icc/dts018
M3 - Journal article
AN - SCOPUS:84875589695
SN - 0960-6491
VL - 22
SP - 397
EP - 425
JO - Industrial and Corporate Change
JF - Industrial and Corporate Change
IS - 2
ER -