Interaction in investment among rival Japanese firms |
| |
Authors: | Silverio Foresi Yasushi Hamao Jianping Mei |
| |
Affiliation: | a Salomon Brothers, 7 World Trade CenterNY 10048USA;b Graduate School of Business, Columbia University, 520 Uris HallNY 10027USA;c Stern School of Business, New York University, 44 West 4th StreetNY 10012USA |
| |
Abstract: | This paper develops a simple framework for investigating the variation in firms' investment behavior across industrial sectors and over time. We divide the economy into three tiers: major industrial sectors, businesses, and firms, and focus on the impact of business-level interaction on firms investment behavior. After controlling for unobservable firm-specific effects, business-specific effects, and a changing economic environment, we find that the investment and profitability of competitors help explain variations in investment across firms in major Japanese industrial sectors. |
| |
Keywords: | Firms' heterogeneity Competition Panel data |
本文献已被 ScienceDirect 等数据库收录! |
|