The Turnover of Market Leaders in Growing and Declining Industries: Evidence from Japan

This article explores the turnover of market leaders in the manufacturing and information and communications industries in Japan. We propose indices for market mobility by focusing on the turnover of market leaders and examine how the likelihood of the turnover of market leaders differs across industries. We provide evidence that market leaders are more likely to be replaced by competitors in growing and declining industries, relative to industries where the growth is more stable. Moreover, the results reveal that the turnover of market leaders is more likely to occur in research and development-intensive industries. Furthermore, the interaction effects of industry growth and concentration indicate that the turnover of market leaders is more likely to occur in declining industries with high concentration.